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The bankruptcy filing of Bittrex contains thousands of suspicious transactions, which may have a significant impact on claims by creditors.
On November 7, according to DL News, the bankruptcy filing documents of Bittrex are filled with tens of thousands of contradictory, suspicious, and unlikely transactions, which could impact nearly 2 million customers who held funds on the exchange before its closure in 2023. Compliance researcher Pasha Onur stated, “Our analysis of the court documents and Bittrex's Hot Wallet and Cold Wallet shows that over $500 million in false transactions were submitted to the bankruptcy court across multiple bankruptcy filings.” If a large number of transactions submitted in Bittrex's bankruptcy filing are inaccurate, it could have significant implications for creditors attempting to recover funds from the collapsed exchange. Bittrex was founded in 2014 in Seattle and had repeatedly violated regulatory requirements, filing for bankruptcy in May 2023, shortly after the U.S. Securities and Exchange Commission accused it of operating an unregistered exchange. The exchange shut down in December of the same year.