court documents

Bittrex approved to borrow $7 mln bankruptcy loan in bitcoin

May 10 (Reuters) – Bankrupt cryptocurrency exchange Bittrex Inc received court permission Wednesday to borrow $7 million in bitcoin to fund the start of its Chapter 11 case.

Seattle-based Bittrex filed for bankruptcy Monday, saying it intended to return customer funds and wind down its U.S. operations. The company’s international affiliates will continue to operate crypto exchanges for customers outside of the U.S., but Bittrex said that the U.S. regulatory environment had become untenable after the SEC sued the company for allegedly running an unregistered securities exchange.

Before filing for bankruptcy, Bittrex stopped accepting new deposits from U.S. customers and told its existing users to withdraw their crypto from the platform.

Bittrex’s U.S. operations made up a minority of its overall users. Affiliated exchanges based in Liechtenstein and Bermuda accounted for about 77% of the company’s 5.4 million users as of March 27, according to court filings.

Bittrex believes that it has enough cryptocurrency to fully repay all remaining customers, and the bankruptcy loan will ensure a smooth wind-down that protects customer assets, attorney Susheel Kirpalani told U.S. Bankruptcy Judge Brendan Shannon at a Wednesday court hearing in Wilmington, Delaware.

Shannon approved the loan on an interim basis, allowing Bittrex

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Kahrig enters guilty plea to bankruptcy fraud charge

EAST ST. LOUIS — A former Edwardsville resident has pleaded guilty to making false statements during his 2018 bankruptcy case in the U.S. Bankruptcy Court for the Southern District of Illinois.

Kevin Kahrig, 49, a former area building contractor, concealed assets from his creditors by transferring those assets to his girlfriend-turned-spouse, Catharine Kahrig, prior to filing bankruptcy, according to court documents.

All told, Kahrig concealed hundreds of thousands of dollars in assets from his creditors, according to United States Attorney Rachelle Aud Crowe. He could receive up to five years in prison and a $250,000 fine at his Feb. 2, 2023 sentencing hearing in East St. Louis.

“Individuals who hide assets and make false statements on bankruptcy pleadings not only defraud their creditors, but they use the federal courts as a part of their fraud,” said Crowe.

“That is an intolerable abuse of the bankruptcy system which demands transparency and forthrightness by those seeking to have their debts discharged or restructured,” she said. “Those who engage in such behavior will be held accountable by this office.”

The case is being prosecuted by Assistant United States Attorney Peter T. Reed.

As part of his Oct. 28 plea, Kevin Kahrig admitted

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