“Bittrex U.S. Announces Thursday Withdrawal Commencement Despite Bankruptcy”

Crypto vs traditional payment systems: US economic report weighs the pros and cons

In May, the cryptocurrency exchange filed for bankruptcy, and its attempt to restore customer access to their holdings encountered resistance from the U.S. government. The government claims that the exchange has outstanding debts amounting to millions of dollars due to sanctions violations.

According to information received by CoinDesk, the American division of cryptocurrency exchange Bittrex is scheduled to initiate customer withdrawals on Thursday after receiving a verdict from a Delaware bankruptcy court.

Judge Brendan Shannon issued a ruling on Tuesday granting authorization to Bittrex U.S. and its affiliated entities. The ruling allows customers with undisputed, noncontingent, and liquidated claims to withdraw both cryptocurrency assets and fiat currency from the trading platform of the debtors, subject to the extent of their claims. The ruling specified that the judgment does not establish ownership rights over the assets or prioritize customer claims over government claims. Furthermore, it highlighted the possibility of potential clawbacks in the future.

Patty Tomasco, a partner at law firm Quinn Emmanuel who’s representing Bittrex, told CoinDesk in an email that “the platform will be up and running for withdrawals on Thursday, June 15.”

Following the exchange’s announcement in March about its intention to cease U.S. operations, significant withdrawals amounting to millions of dollars took place. Subsequently, the unit filed for bankruptcy on May 8. By May 10, the company disclosed that it possessed $300 million in customer funds and cryptocurrencies within its U.S. division. Although typical bankruptcy procedures entail transaction suspensions, the company contended that it aimed to enable customers to access their funds without lengthy legal proceedings.

Related Posts