Bittrex US Users Can Now Start Withdrawing From June 15

Key Points:

• Following a Delaware bankruptcy court judgment, Bittrex is slated to open for US customers’ withdrawals on Thursday.
• The exchange says it has over 100,000 creditors, with obligations and assets valued between $500 million and $1 billion.
• Thus far, Bittrex’s US branch has had a difficult 2023.

The U.S. arm of crypto exchange Bittrex is set to open for customer withdrawals Thursday following a ruling by a Delaware bankruptcy court, According to the report collected by CoinDesk.

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 the future.

Bittrex filed for bankruptcy in the U.S. state of Delaware in May, months after announcing it would wind down operations in the country and weeks after being sued by the Securities and Exchange Commission (SEC). The Exchange believes it has more than 100,000 creditors, with estimated liabilities and assets both within the $500 million to $1 billion range. Bittrex’s U.S. branch has had a rough 2023 so far, laying off 80 people in February and announcing in March that it would end all operations by the end of April. These changes have not affected Bittrex Global, the non-U.S. crypto exchange.

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. As Coincu reported, the US government previously opposed a petition by the insolvent encrypted exchange Bittrex to restore clients’ cash and cryptocurrencies.

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