Bankruptcy case Bittrex has been updated with information about a multitude of suspicious transactions that may affect nearly 2 million customers who held funds on the cryptocurrency exchange before its collapse in 2023.
Our analysis of court documents, as well as hot and cold wallets Bittrex identified more than $500 million in fabricated transactions filed with bankruptcy court across multiple filings, said compliance specialist Pasha Onur.
According to Onur, the exchange carried out tens of thousands of small, economically unviable transactions, repeating the withdrawal of the same amounts of cryptocurrency.
Multiple transactions by the same user with the same withdrawal amounts on the same day
The financial statements analyzed covered the 90-day period prior to the announcement. Bittrex bankruptcy and was presented to the court in June 2023.
During this period, the exchange set the minimum cash withdrawal amount at $35 with a $25 fee and tripled the fee Block-network, usually ranging from $5 to $20, for withdrawing cryptocurrency.
Despite this, thousands of transactions were made for small amounts, and their value in US dollars was a small fraction of the fees charged for withdrawals.
If a significant portion of the transactions presented in the bankruptcy petitions Bittrex, turns out to be inaccurate, this could significantly impact creditors trying to recover funds from the bankrupt exchange.
At the time of filing for bankruptcy, Bittrex There were approximately 1,6 million users. However, just under 3% of users filed lawsuits.