The Bittrex exchange is asking the court to increase the total loan value to $19 million.
Bittrex exchange allowed borrowing 250 BTC to cover bankruptcy
According to Reuters, the court has allowed Bittrex to borrow 250 BTC ($7 million worth) from parent company Aquila Holdings to cover Chapter 11 bankruptcy proceedings.
In addition, Bittrex will also ask the court to allow an additional 450 BTC (approximately $12.4 million) in a hearing in June. The total loan value will be $19 million, if approved. While Bittrex can afford to refund customers, the loan will make the bankruptcy process smoother.
As Cointelegraph reported, the Seattle-based platform filed for bankruptcy in the US on Monday. The company's international branches continue to operate to serve customers outside of the United States. The current US regulatory environment has put pressure on the platform, especially after the SEC accused Bittrex of operating an unauthorized stock exchange.
Before filing for bankruptcy, Bittrex closed its US branch, stopped deposits, and asked users to withdraw funds. The exchange currently has more than 100,000 creditors, with debts and assets estimated at $500 million to $1 billion. Two subsidiaries, Bittrex Malta Ltd and Bittrex Malta Holdings Ltd, have also filed for bankruptcy protection with the Delaware County Bankruptcy Court.
According to court filings, the United States accounts for only a minority of Bittrex's overall performance. The Liechtenstein and Bermuda markets are the focus, serving 5.4 million users as of March 27.
In the past 24 hours, Bittrex only recorded $7.2 million in trading volume on the exchange.