Investing

Bittrex US to Open Customer Withdrawals on June 15 After Court Ruling

Tim Fries

Published: June 14, 2023 10:17 pm

The US branch of the bankrupt crypto exchange Bittrex has obtained approval to open customer withdrawals on Thursday, June 15, a bankruptcy court in Delaware reportedly ruled on Tuesday. The ruling comes several weeks after Bittrex fell into bankruptcy following several setbacks.

Delaware Judge Permits Bittrex to Open Withdrawals Despite Government Pressures

Bittrex’s US division is expected to allow customer withdrawals on June 15, according to a Delaware bankruptcy court ruling. Specifically, Judge Brendan Shannon said in a ruling on Tuesday it has authorized Bittrex US and its affiliates to allow 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.”

Importantly, the ruling does not determine who legally holds the customer assets or whether the judge prefers investor claims to those of the US government, adding there could be clawbacks in the future. According to Quinn Emmanuel, the law firm representing Bittrex, the crypto exchange will open withdrawals on Thursday.

The move comes a month after the crypto exchange announced it had filed for bankruptcy. Still, its legal attempt to enable investors to access their funds once again has been opposed by the US government, which argues it is owed millions of dollars for sanctions breaches.

Bittrex Among Those Sued by the SEC

Bittrex’s bankruptcy filing in May showed the crypto exchange had between $500 million and $1 billion in assets and liabilities, while the number of creditors exceeded 100,000. Notably, the company’s biggest creditor is the Office of Foreign Assets Control (OFAC), with which Bittrex has struck a deal to settle over alleged sanctions violations in 2022.

The digital assets service provider announced it would exit the US market amid intensifying regulatory pressures and lawmakers’ lack of willingness to promote more reasonable policies. Bittrex was also one of the crypto exchanges sued by the Securities and Exchange Commission (SEC) for breaching securities regulations shortly after the regulator forced Kraken to shut down its staking service and pay a $30 million penalty.

More recently, the SEC filed consecutive lawsuits against the world’s largest crypto trading platforms by volume, Binance, and Coinbase, alleging several wrongdoings. In the wake of its actions, the securities watchdog added numerous altcoins to the list of cryptocurrencies it considers ‘securities,’ including ADA, MATIC, SOL, and BNB, among many others.

This article originally appeared on The Tokenist