Court allows Bittrex exchange to open withdrawals for clients
A number of users will be allowed to withdraw crypto assets and fiat currency within the requirements for the exchange
14.06.2023 - 11:00
146
2 min
0
The U.S. arm of crypto exchange Bittrex is set to open for customer withdrawals Thursday following a ruling by a Delaware bankruptcy court, CoinDesk has been told.
The exchange filed for bankruptcy in May, and its legal bid to let customers once again access holdings faced opposition from the U.S government, which says it’s still owed millions for sanctions violations.
In his Tuesday ruling, Judge Brendan Shannon authorized Bittrex U.S. and its affiliates “to permit their customers holding undisputed, noncontingent, and liquidated claims to withdraw cryptocurrency assets and fiat currency from the Debtors’ trading platform to the extent of such claims.”
The judgment doesn’t determine who legally owns those assets, or whether customer claims are favored over the government’s, the ruling added, and there could be clawbacks in future.
Patty Tomasco, a partner at law firm Quinn Emmanuel who's representing Bittrex, told CoinDesk in an email that “the platform will be up and running for withdrawals on Thursday, June 15.”
The exchange experienced millions of dollars of withdrawals after saying in March it planned to close U.S. operations the following month. The unit filed for bankruptcy May 8. As of May 10 the company said it held $300 million in customer cash and crypto in the U.S. arm. While bankruptcy proceedings normally include a freeze on transactions, the company argued it wanted customers to be able to access their money without protracted litigation.
In common with other crypto exchanges such as Binance and Coinbase, Bittrex had faced charges from U.S regulators that it violated federal law by operating an unregistered securities exchange.
This material is taken from the website https://www.coindesk.com.
Useful material?
Business
Earlier, Brad Garlinghouse claimed apparent harassment of the company by the US authorities
May 14, 2024
Crypto regulations
According to Brad Garlinghouse, the magnitude of the impact of such harassment on the crypto ecosystem is beyond prediction
May 13, 2024
Crypto regulations
The condition is part of the exchange’s agreement with authorities to plead guilty to regulatory violations
May 13, 2024
Market
The USDT issuer responded by saying that the report lacked sufficient data to support such claims
May 10, 2024
Incidents
The breach was reported to Binance by the head of its monitoring department, who was later fired
May 9, 2024
Trends
In April, the project’s launch on the crypto exchange was postponed twice
May 9, 2024