- Bittrex has kicked off bankruptcy proceedings.
- The crypto exchange’s funding source for legal fees has recently been revealed.
- Bittrex plans to receive the funding in two tranches.
After a challenging year that saw it lay off over 80 employees in February, Bittrex’s United States arm filed for bankruptcy in federal court in Delaware on Monday, May 8.
Bittrex’s decision to file for bankruptcy came weeks after receiving a lawsuit from the U.S. Securities and Exchange Commission for allegedly violating investor protections law by failing to register as a securities exchange, even despite the firm’s intentions to shut down its business at the end of April.
While many have sympathized with the business following its Chapter 11 filing, some questioned Bittrex’s decision to take on legal fees from bankruptcy proceedings. Reports reveal that the firm plans to cover these legal fees with Bitcoin loans.
Bittrex to Receive 700 BTC to Fund Legal Fees
Bittrex plans to bankroll its bankruptcy case with Bitcoin loans from its parent company Aquila Holdings, as reported by Reuters on Wednesday, May 10.
The firm is expected to receive 700 BTC, worth about $19.2 million at…
