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Bankrupt Bittrex U.S. to allow withdrawals now

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Bittrex’s U.S. arm is set to allow withdrawals for its customers beginning 15 June.

Bankrupt crypto exchange Bittrex U.S. to allow withdrawals

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  • A Delaware bankruptcy court ruled that Bittrex U.S. and its affiliates can allow their customers to withdraw crypto assets.
  • The exchange filed for bankruptcy last month as it was facing SEC’s enforcement action.

Following a judgement by a Delaware bankruptcy court, the U.S. arm of the bankrupt cryptocurrency exchange Bittrex is slated to open for customer withdrawals on 15 June, according to a CoinDesk report.

Judge Brendan Shannon ruled that Bittrex U.S. and its affiliates are authorized to allow their customers with undisputed, non-contingent, and liquidated claims to withdraw crypto assets and fiat currency from the Debtors’ trading platform to the extent of such claims.

The ruling emphasized that the judgement does not clarify who legally owns those assets or whether customer claims take precedence over government claims, and that claw backs may occur in the future.

Patty Tomasco, a lawyer representing the exchange, told the publication in an email that “the platform will be up and running for withdrawals on Thursday, June 15.”

Exchange declares bankruptcy following SEC’s action

After announcing in March that it will close its U.S. operations the following month, the exchange saw millions of dollars in withdrawals. The division declared bankruptcy on 8 May.

According to the exchange, it held $500 million-$1 billion in assets and $500 million-$1 billion in liabilities. The bankruptcy included Seattle-based Bittrex, Inc., two Bittrex ventures in Malta, and a related entity, Desolation Holdings LLC.

While most bankruptcy proceedings entail a freeze on transactions, the company maintained that it wanted consumers to be able to continue doing business. The U.S. government objected to a Bittrex proposal to repay funds to its customers.

Bittrex, like other crypto exchanges such as Binance and Coinbase, was charged by U.S. officials for violating federal laws by running an unregistered securities exchange.

In October, the exchange was also charged with Bank Secrecy Act breaches by the U.S. Treasury’s Office of Foreign Assets Control and the Financial Crimes Enforcement Network. The company agreed to pay about $53 million in a settlement.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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