Bankrupt Bittrex Will Soon Be 'Up And Running' For Crypto Withdrawls, Judge Says

Zinger Key Points
  • Bittrex will be "up and running for withdrawals" by Thursday, June 15.
  • Bittrex, akin to Binance and Coinbase, is under scrutiny for operating as an unregistered securities exchange.

Bittrex's U.S. subsidiary will enable customer withdrawals this Thursday, per a directive by a Delaware bankruptcy court.

The company's attempt to allow customers to regain access to their holdings was met with resistance from the U.S. government. The exchange still owes a substantial amount due to violations of sanctions.

On Tuesday, Judge Brendan Shannon granted permission to Bittrex U.S., along with its affiliate entities, “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."

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Patty Tomasco, a partner at the Quinn Emmanuel law firm representing Bittrex, expects the platform to be "up and running for withdrawals" by Thursday, June 15.

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Bittrex U.S. witnessed a massive outflow of funds, amounting to millions of dollars, subsequent to its announcement in March regarding the impending shutdown of its U.S. operations in the following month.

The exchange filed for bankruptcy on May 8. On May 10, Bittrex declared that its U.S. division held customer assets valued at $300 million in cash and cryptocurrency.

Although bankruptcy proceedings typically involve a halt in transactions, Bittrex contended that it was seeking to enable customers to access their funds without being entangled in drawn-out legal disputes.

Bittrex, akin to other cryptocurrency exchanges like Binance BNB/USD and Coinbase COIN, has faced accusations from U.S. regulatory authorities for operating as an unregistered securities exchange.

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Posted In: CryptocurrencyNewsLegalTop StoriesMarketsBankruptcy proceedingsBittrex UScrypto assetsCryptocurrency ExchangeCustomer withdrawalsDelaware Bankruptcy Courtfiat currencyJudge Brendan ShannonPatty TomascoQuinn Emmanuel Law FirmUnregistered Securities Exchange
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