Bittrex, the cryptocurrency exchange, was granted permission by a bankruptcy court on Monday to close down its U.S. operations following months of work to return customer’s crypto deposits.
In a Wilmington, Delaware, court hearing, U.S. Bankruptcy Judge Brendan Shannon approved Bittrex’s bankruptcy plan, allowing the company to come out of bankruptcy with a wind-down plan that would pay all remaining creditors in full.
Bittrex was accused of running an unregistered securities exchange by the U.S. Securities and Exchange Commission; as a result, it filed for bankruptcy protection in May. After the SEC complaint, Bittrex decided to end its operations in the United States and return assets to customers. In August, a $24 million settlement was reached with the SEC.
Seattle-based Bittrex stated that Bittrex Global, which caters to clients outside of the US, will not be impacted by the bankruptcy filing. The headquarters of the company’s non-US operations are in Liechtenstein.
Bittrex urged users to take their money out before declaring bankruptcy. But unlike other bankrupt cryptocurrency companies, Bittrex did not have an issue with a funding shortage and did not initially deny users access to their accounts.
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