Bittrex crypto exchange has been granted approval by a bankruptcy judge in the United States for a $7 million loan from its parent company, Aquila Holdings, to facilitate its bankruptcy proceedings.
The exchange intends to request a second loan of 450 BTC worth $12 million in a hearing later in June. Despite claims that it can repay all customers in cryptocurrency, the loan will only be used to assist the bankruptcy.
Bittrex filed for Chapter 11 bankruptcy in the District of Delaware last week, impacting its Seattle-based entity, two Bittrex enterprises in Malta, and a related entity called Desolation Holdings LLC.
The exchange had previously announced its intention to cease US operations by the end of April due to regulatory uncertainties.
