Bittrex Bankrupt: Exchange Funds Bankruptcy with Bitcoin Loans

Bittrex Files for Bankruptcy

• On May 8th, Bittrex’s United States arm filed for bankruptcy in federal court in Delaware.
• The crypto exchange plans to receive 700 BTC from its parent company Aquila Holdings to cover legal fees in two tranches.
• Bittrex cited difficult regulatory and economic conditions as the reason for their decision.

Bitcoin Loan Approved by Court

The court granted Bittrex permission to take a loan of 250 BTC worth approximately $6.86 million at current rates. U.S. Bankruptcy Judge Brendan Shannon underlined that Bitcoin’s low interest rate and volatility protections played a key role in his decision to permit the loan. Bittrex reportedly plans to repay the loan in Bitcoin.

Customers Assured of Funds

The crypto exchange has assured customers that deposits are intact and enabling withdrawals would be prioritized during bankruptcy proceedings.

Questions on US Crypto Regulations

As several sad reactions have trailed Bittrex’s bankruptcy decision, many have questioned U.S. crypto regulations and its role in the exchange’s collapse.


Bittrex’s decision to file for bankruptcy came as a surprise yet it is not unconnected with the challenging year that saw it lay off over 80 employees and the lawsuit from the U.S Securities and Exchange Commission they received recently which led them to seek funding through Bitcoin loans from their parent company Aquila Holdings. Despite this setback, customers have been assured that their funds are intact as withdrawals will be prioritized during proceedings