• Bittrex US has been authorized by a Delaware bankruptcy court to allow its customers to withdraw cryptocurrency assets and fiat currency from its trading platform.
• The ruling states that future clawbacks may occur and does not establish who legally owns those assets.
• Bittrex declared bankruptcy in May after the US government sued it for sanctions violations and was one of the first exchanges to be targeted by the SEC.
Bittrex US Allowing Withdrawals
Bittrex US, the American branch of cryptocurrency exchange Bittrex, is scheduled to open for customer withdrawals on Thursday following a decision by a Delaware bankruptcy court. The court authorized Bittrex US 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.“
Previous Events
The exchange declared bankruptcy in May after the US government sued it and its CEO for sanctions violations. According to the exchange, as of May 10, its US arm had $300 million in customer cash and cryptocurrency. Although transactions are typically frozen during bankruptcy proceedings, the company claimed it wanted customers to have access to their money without protracted legal battles.
Opposition From Government
The US government has opposed this legal attempt of Bittrex to allow customers access once more. Tuesday’s ruling stated that future clawbacks may occur and that the judgment does not establish who legally owns those assets or whether customer claims are preferred over those of the government.
SEC Targeting Crypto Exchanges
Bittrex was among the first crypto exchanges targeted by the Securities & Exchange Commission (SEC) which has now turned its guns on Binance & Coinbase citing they are operating as an unregistered securities exchange among other things.
Conclusion
Bittrex will be allowing withdrawals from Thursday June 15th following a decision by a Delaware Bankruptcy Court despite opposition from the US Government & being one of many exchanges now facing scrutiny from SEC over securities regulations violations
