A recent development that rattled the crypto sphere was FTX’s insolvency, which was widely believed to be an isolated incident. Bittrex, a popular cryptocurrency exchange, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Wilmington, Del., on Monday, once again bringing the issue of the industry’s fragile state to the fore. The Chapter 11 filing only covers Bittrex’s US affiliate, which is based in Seattle, Washington, while Bittrex Global, which serves customers outside the US, will continue to operate as usual, according to the company.

Bittrex has estimated assets ranging between $500 million to $1 billion, with more than 100,000 creditors, according to a court filing. The exchange’s US subsidiary had already warned in March that it would cease its operations in the country at the end of April due to the “current U.S. regulatory and economic environment.” In April, Bittrex also asked its US customers to withdraw their funds by Apr. 30, when the company shut down its operations.

Despite the wind-down in the US, the US Securities and Exchange Commission (SEC) filed a lawsuit against Bittrex last month, alleging that the platform had violated federal statutes by operating a national securities exchange, broker, and clearing agency. The federal regulator also sued Bill Shihara, the former CEO of Bittrex and Bittrex Global, claiming that tokens such as OmiseGo, Algorand, Dash, TokenCard, i-House Token, and Naga were securities. The SEC has argued that Bittrex should have registered with the agency and applied specific transparency rules before offering these cryptocurrencies.

Although Bittrex Global CEO Oliver Linchsaid has vowed to fight the charges in court, the company’s assets will be distributed as per the bankruptcy court’s decision. However, court papers show that customers are expected to be paid in full.

The crypto industry has seen a host of prominent players file for bankruptcy in less than a year, including Celsius Network, Voyager Digital, Three Arrows Capital, and BlockFi. Despite being considered a major beneficiary of the traditional financial system’s problems, which was marred by the failure of several regional banks such as Silicon Valley Bank, Signature Bank in New York, and First Republic Bank, the crypto industry is not immune to the same problems it aims to solve.