The US Crypto Exchange Bittrex Rises Again with Long-Awaited Withdrawals Set to Resume
- Antwan Koss
- June 14, 2023
- news, Crypto, Crypto Market
- Bankruptcy, Bittrex, Crypto, US, Withdrawals
- 0 Comments
- Bittrex U.S. is set to open for customer withdrawals on June 15.
- The hearing on Bittrex’s plan to enable withdrawals was held on June 14, at the Delaware bankruptcy court.
- Bittrex will begin customer payouts despite US objections.
Amidst a sea of financial turmoil, Bittrex, a prominent US-based crypto exchange, had found itself in dire straits. The company had filed for bankruptcy in May 2023, owing to a severe lack of liquidity and mounting financial difficulties. This had left many customers in a state of limbo, unable to access their funds from the exchange.
However, there is some good news on the horizon. Recently, a Delaware bankruptcy court has ruled in favor of Bittrex, allowing the exchange to proceed with customer payouts. This means that come June 15, customers will finally be able to withdraw their funds from the beleaguered crypto exchange.
JUST IN: Bankrupt 🇺🇸 US crypto exchange Bittrex to allow withdrawals from June 15.
— Coingraph | News (@CoingraphNews) June 14, 2023
The Bittrex Bankruptcy
The crypto exchange, Bittrex, has filed for bankruptcy and encountered opposition from the U.S government over its legal bid to let customers access their holdings. The government claims it is still owed millions for sanctions violations.
However, in a ruling by Judge Brendan Shannon on Tuesday, Bittrex U.S. and its affiliates were given permission “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.” It is important to note that the ruling does not determine the legal ownership of these assets or whether customer claims take priority over the government’s.
Patty Tomasco, a partner at Quinn Emanuel law firm representing Bittrex, stated that the platform would officially resume operations for withdrawals on June 15th.
This comes after the exchange experienced waves of withdrawals that amounted to millions of dollars in March, following the announcement that they would shut down U.S. operations the following month.
Following this decision, the company filed for bankruptcy on May 8th, with a reported $300 million in customer funds and cryptocurrency held in the U.S. arm as of May 10th. Although bankruptcy proceedings often result in transaction freezes, Bittrex argued that they wanted customers to have access to their funds without lengthy legal battles.
The Fall of Bittrex
Towards the end of 2022, Bittrex encountered troubles as the United States began to tighten its grip on companies linked to the cryptocurrency industry.
As a result, the exchange made a decision to exit the US market in April 2023, with the CEO, Richie Lai, stating that “operating in the US is no longer feasible.” Following the move to leave, it was only natural that the company would file for bankruptcy a few days later, as per Bittrex’s report. The bankruptcy proceedings, however, only affected the American branch of the exchange, with Bittrex Global continuing to operate as usual.
Bittrex has estimated that the bankruptcy in the US has resulted in more than 100,000 creditors seeking their funds, while the exchange’s liabilities amount to between $500 million and $1 billion. Bittrex held $250 million in customer deposits in crypto and $50 million in cash.
The announcement of Bittrex’s latest move to allow customer withdrawals has brought a wave of relief to many who were previously unable to access their funds due to the exchange’s bankruptcy filing. Bittrex is just one of several crypto exchanges that have faced financial difficulties in recent years, shedding light on the potential risks linked with investing in cryptocurrencies.
Despite these challenges faced by Bittrex and others, the crypto market remains active and continues to evolve. Many investors view cryptocurrencies as an asset class with great potential, offering the chance for high returns and diversification benefits.