Bittrex U.S. Enables Withdrawals as Bankruptcy Process

Customers regain control of funds as Bittrex U.S. reopens withdrawals during the bankruptcy process.
Bittrex U.S. Enables Withdrawals as Bankruptcy Process

Bittrex U.S., the American branch of crypto exchange Bittrex, is preparing to allow customer withdrawals starting Thursday, as authorized by a ruling from a Delaware bankruptcy court. 

Despite opposition from the U.S. government, which claims outstanding sums for sanctions violations, Judge Brendan Shannon’s decision permits Bittrex U.S. and its affiliates to enable customers with undisputed, noncontingent, and liquidated claims to withdraw their cryptocurrency assets and fiat currency from the trading platform. 

It’s important to note that the ruling does not determine ownership of the assets or prioritize customer claims over the government’s, and there is a possibility of clawbacks in the future.

Patty Tomasco, a partner at Quinn Emmanuel law firm representing Bittrex, confirmed that the platform will be operational for withdrawals on June 15. In March, Bittrex announced its intention to close U.S. operations, leading to significant withdrawals. 

The bankruptcy filing took place on May 8, with the company disclosing $300 million in customer cash and crypto holdings in the U.S. arm. Despite the customary freeze on transactions during bankruptcy proceedings, Bittrex argued for customers to access their funds without lengthy litigation.

Similar to other major crypto exchanges like Binance and Coinbase, Bittrex had faced allegations from U.S. regulators regarding violations of federal law by operating an unregistered securities exchange. The reopening of withdrawal services marks a positive development for Bittrex U.S. customers as they regain access to their funds amid the ongoing bankruptcy process.

Also Read: Bankrupt Bittrex’s Proposal Faces Legal Challenge

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