On June 15, the US division of the bitcoin exchange Bittrex will open the withdrawal of funds for customers after a positive decision of the Delaware Bankruptcy Court. It is reported by CoinDesk.
In April, Bittrex announced it was winding down operations in the US, citing regulatory uncertainty. Following the US Securities and Exchange Commission (SEC) filed a lawsuit against the company in connection with violations of the law.
On May 8, the exchange filed for insolvency in the United States. According to the lawsuit, the company’s assets and liabilities range from $500 million to $1 billion. The number of creditors exceeds 100,000. The platform said it holds the assets of US customers who did not withdraw them by April 30.
After filing for bankruptcy, Bittrex went to court to allow users to withdraw funds without the costs and expenses associated with the restructuring.
However, the petition was resisted by government officials, who cited the company’s $5 million outstanding debt to FinCEN. This is part of the ~$30 million that Bittrex agreed to pay in October 2022 as part of the settlement of charges of violating the US sanctions regime.
The hearings took place on June 13. Judge Brendan Shannon, in an order, authorized Bittrex US and affiliates to “permit clients with undisputed, unconditional, and monetable claims to withdraw crypto and fiat assets.”
The court decision did not define the categories of users eligible to claim a refund from Bittrex. The order also does not establish whether debt payments to the authorities are given priority over other claims.
Patricia Tomasco, partner at law firm Quinn Emmanuel, who represents the exchange, confirmed to the publication that “the platform will open withdrawals on Thursday, June 15.”
As a reminder, on June 13, a federal court in the District of Columbia ordered the SEC and Binance.US to reach a compromise in ensuring the protection of client assets with the ability to continue operating the platform as usual.
The decision was a response to a corresponding petition from the regulator as part of a lawsuit against Binance and its CEO Changpeng Zhao.
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