Bankrupt Bittrex Crypto Exchange to Allow Withdrawals from June 15

Updated: 14 June 2023

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Bittrex Inc., a once-renowned cryptocurrency exchange in the United States, has announced that it will allow users to withdraw their funds starting Thursday, June 15. This latest development follows a ruling by a Delaware bankruptcy court, which has likely played a significant role in enabling Bittrex to resume withdrawals for its users.

Bankrupt Crypto Exchange Bittrex U.S. Set to Allow Withdrawals Starting Thursday

The move follows a Tuesday ruling from a Delaware court.

Source: CoinDesk pic.twitter.com/kxWCpxCb4q

— Wen3 🚀 (@Wen3_AI) June 14, 2023

Bankrupt exchange, accused by the U.S. SEC for running an unregistered securities platform, got approval in a May ruling by Judge Brendan Shannon to allow customers to withdraw cryptocurrency and fiat currency assets.

This ruling, however, didn’t establish the legal ownership of these assets or prioritize between customer claims and government’s.

Patty Tomasco from Quinn Emanuel, the legal firm representing the embattled exchange, confirmed to Coindesk that the platform would be ready for withdrawals starting June 15th.

However, she did not comment on the issue of asset ownership.

The SEC on Bittrex’s Shoulder

Like other crypto exchanges such as Binance and Coinbase, Bittrex has faced charges from U.S. regulators for violating federal law by operating an unregistered securities exchange.

Back in March, the exchange faced some significant withdrawals after announcing their plans to close their U.S. operations. Ultimately, the exchange filed for bankruptcy on May 8.

Due to continued regulatory uncertainty, we have made the difficult decision to wind down our U.S. operations, effective April 30, 2023. All funds are safe and can be fully withdrawn immediately.

This does not affect customers of @BittrexGlobal https://t.co/MY4u7XLk9z

— Bittrex (@BittrexExchange) March 31, 2023

Bankruptcy procedures often lead to a freeze in transactions. However, Bittrex advocates for customer access to their funds, avoiding drawn-out legal battles.

As of May 10th, the company reported having $300 million in customer cash and crypto in its U.S. operations.

Bittrex customers have been anxiously awaiting access to their funds. There’s been rampant concern about asset security, with fear of investment loss topping the list.

While the capacity to withdraw funds is a positive turn for Bittrex customers, it’s important to remember that the exchange’s future is still in the balance.

Historically, Bittrex has been a major contributor in the U.S. crypto market, boasting an extensive range of digital assets for trade. However, regulatory issues have led to a market share decline in recent years.

In the wake of this case and similar instances around cryptocurrency exchange regulation, industry experts are advocating for strengthened regulatory frameworks.

Agreed! It’s exciting to see regulatory frameworks being established for #Bitcoin. This will provide much-needed confidence for institutional investors and propel #crypto into the mainstream. #HODL #BTC

— bolin stone (@jacobelliott21) June 14, 2023