Chicago-based DULuth Trading Company filed for Chapter 11 protection, the largest bankruptcy filing in the US.
The company, which is known for its online trading and cryptocurrency trading, filed for the protection in the Illinois Department of Financial Institutions, according to a news release.
DULZA Trade, the parent company of DULSA Trading, filed a Chapter 11 filing on March 28.
“Our goal is to remain in a strong financial position while maintaining our ability to continue operating,” DULZA Trading’s Chief Executive Officer Michael Kuchera said in the release.
The bankruptcy filing comes after a number of recent scandals that have plagued the company.
The company has been hit with multiple lawsuits in the past, including a class-action lawsuit filed in October that alleged the company was involved in a scheme to manipulate the price of Ether.
The Chicago Tribune reported in September that the company had been using a fake company to set the price for a trading volume in the Ethereum cryptocurrency, a decentralized network of computer programs that allows users to transact in real time.
The lawsuit alleged the scheme involved “unlawful insider trading and the manipulation of the price and volume of Ether.”
In addition to a lawsuit filed by DULZZA Trading, another lawsuit filed earlier this month claims DULAX Trading violated state securities laws.
The state claims the company traded for $2.6 million in Ethereum and was selling a “bulk” of the cryptocurrency at $2 per Ether.
A separate class-wide lawsuit filed last week alleges the company is also involved in the illegal trading of Ether through the “Viacoin Exchange,” a cryptocurrency trading platform.
In that lawsuit, the company says DULAZ Trading “brokered and facilitated a series of trades” to buy and sell Ether through a Viacoin exchange, which was run by the company itself.
The Tribune reported that the state’s complaint alleges DULUX trading was “the main reason” for the illegal trades, which it says caused the price to fall “between $10,000 and $20,000 per Ether.”