• Bittrex U.S. is set to allow withdrawals for its customers beginning 15 June after a judgement from a Delaware bankruptcy court.
• The exchange filed for bankruptcy last month due to an enforcement action by the SEC.
• Bittrex was charged with Bank Secrecy Act breaches by the U.S. Treasury’s Office of Foreign Assets Control and the Financial Crimes Enforcement Network in October, settling for $53 million.
Bittrex U.S To Allow Withdrawals
Bittrex’s U.S arm is set to allow withdrawals for its customers beginning 15 June after a judgement from a Delaware bankruptcy court ruled that Bittrex U.S and its affiliates are authorized to allow their customers with undisputed, non-contingent, and liquidated claims to withdraw crypto assets and fiat currency from the Debtors’ trading platform to the extent of such claims.
Background On Exchange’s Bankruptcy
The exchange filed for bankruptcy last month as it was facing SEC’s enforcement action and included Seattle-based Bittrex, Inc., two Bittrex ventures in Malta, and a related entity, Desolation Holdings LLC.. The company maintained that it wanted consumers to be able to continue doing business despite most bankruptcy proceedings entailing a freeze on transactions .
Charged By US Officials
Bittrex was charged by U.S officials for violating federal laws by running an unregistered securities exchange, as well as with Bank Secrecy Act breaches by the U.S Treasury’s Office of Foreign Assets Control and the Financial Crimes Enforcement Network in October . It agreed to pay about $53 million in settlement with authorities at this time .
Judge Brendan Shannon Ruling
Judge Brendan Shannon ruling emphasized that while allowing customer withdrawals, it does not clarify who legally owns those assets or whether customer claims take precedence over government claims; claw backs may occur in the future . According to lawyer Patty Tomasco representing the exchange , “the platform will be up and running for withdrawals on Thursday, June 15″.
$500 Million-$1 Billion In Assets And Liabilities
When announcing they would close their US operations last month , millions of dollars were withdrawn from Bittrex’s accounts; bankruptcy filing revealed they held $500 million-$1 billion in assets and liabilities respectively .