Bittrex’s American Subsidiary to Enable Customer Withdrawals This Week (Report)
The US affiliate of the cryptocurrency platform Bittrex will reportedly allow user withdrawals on June 15. The upcoming permission comes a few days after US District Judge Brendan Shannon from the Delaware court signed the order.
American regulators have targeted Bittrex in the past several months, accusing it of violating anti-money laundering procedures and investor protection laws. The company filed for bankruptcy at the beginning of May, assuring customers’ funds are “safe and secure.”
- As reported by CoinDesk, the American subsidiary of Bittrex will honor clients’ withdrawals on June 15 after US District Judge Shannon said the firm is “authorized to take all actions necessary to effectuate the relief granted.”
- The American government previously opposed the exchange’s wish to compensate customers, calling the motion “premature.”
“The Debtors have not demonstrated why the issues of ownership of cryptocurrency assets need to be determined before the confirmation of the Plan. Finally, siloing creditors into subordinated classes outside of the confirmation hearing is improper. For these reasons, which are discussed more fully below, the Motion must be denied,” the authorities stated.
- The real problems for Bittrex started last autumn when US watchdogs slammed it with a $53 million penalty over an alleged violation of anti-money laundering laws.
- The regulatory pressure caused the platform to cease its operations in the States at the end of March and assured that users’ funds are “safe, here, and ready for your retrieval.”
- The company’s hurdles did not stop there, and it received a Wells Notice from the US SEC in mid-April, maintaining it had violated investor protection laws.
- Bittrex filed for Chapter 11 bankruptcy protection a few weeks later: a move directed to its US and Maltese subsidiaries. On the other hand, the filing did not affect Bittrex Global.
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