Bittrex exchange received regulatory approval from the court to get a loan from its global parent company ahead of bankruptcy case proceedings.
Bittrex Global is a popular crypto trade platform. Bittrex Global was providing crypto services in the US via its subsidiary Bittrex. Recently Bittrex filed for bankruptcy under the Chapter 11 code in the US and probably planned to liquidate its Bittrex assets to exit the bankruptcy.
On 10 May 2023, Reuters reported that in the last hearing, the court judge Brendan Shannon approved the 250 BTC loan for the Bittrex exchange.
The court judge confirmed that Bittrex can take $7 million worth of Bitcoin loan from its global parent company. The report also confirmed that Bittrex will again try to secure another loan of $12.4 million from Bittrex Global.
Exchange stated that it can give 100% withdrawal of the crypto assets to all of its US customers but here exchange will use the loan funds to start the bankruptcy case.
Bittrex, SEC charges, & Bankruptcy
In March, Bittrex announced that the exchange was going to quit the US market citing an unclear regulatory environment but later In mid of April exchange received Wells Notice from the United States Securities and Exchange Commission (SEC) over a potential violation of investor protection laws.
After the SEC’s well notice, Bittrex filed for bankruptcy on 8 May, which was a strange decision by the exchange. Few people claimed that Bittrex planned to liquidate its US based crypto platform, while few people claimed that exchange was really struggling with its bad financial position.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.