Bittrex US Users Can Now Start Withdrawing From June 15

Bittrex US users can start withdrawing from june 15. Following a decision by a Delaware bankruptcy court, the United States division of cryptocurrency exchange Bittrex is scheduled to commence customer withdrawals on Thursday.

Bittrex US Users Can Now Start Withdrawing From June 15

A Delaware bankruptcy court ruled on Tuesday, granting permission to Bittrex U.S. and its affiliates to allow customers with undisputed, noncontingent, and liquidated claims to withdraw both cryptocurrency assets and fiat currency from the trading platform.

However, the court ruling clarified that this decision does not determine the legal ownership of these assets or whether customer claims take precedence over the government’s claims, and future clawbacks could occur.

Bittrex filed for bankruptcy in Delaware in May, several months after announcing its intention to wind down operations in the United States and weeks after facing a lawsuit from the Securities and Exchange Commission (SEC).

The exchange estimates that it has over 100,000 creditors, and its liabilities and assets fall within the range of $500 million to $1 billion.

While Bittrex’s U.S. branch faced challenges in 2023, such as laying off 80 employees in February and announcing the cessation of operations by the end of April, these changes did not affect Bittrex Global, the non-U.S. cryptocurrency exchange.

As of May 10, the company reported holding $300 million in customer cash and cryptocurrencies in its U.S. arm. Typically, bankruptcy proceedings involve a freeze on transactions. However, Bittrex argued that it wanted its customers to have access to their funds without lengthy legal battles.

Earlier, the U.S. government had opposed Bittrex’s petition to restore clients’ cash and cryptocurrencies during the insolvency process.

The recent ruling by the Delaware bankruptcy court represents a significant development for Bittrex U.S., enabling customers with eligible claims to withdraw their assets. However, the complexity of the bankruptcy case and potential future clawbacks introduce uncertainties into the process.

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