- Bittrex USA had $50M in cash and $250M in crypto belonging to its customers as of May.
- The United States authorities have opposed Bittrex’s intention to refund clients.
The insolvent U.S. branch of the cryptocurrency exchange Bittrex will reopen for withdrawals on Thursday. The decision comes after Delaware bankruptcy judge Brendan Shannon’s ruling on Tuesday.
The ruling stated:
The exchange can “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.”
Also, attorney Susheel Kirpalani told the court in May that Bittrex USA had $50 million in cash. And $250 million in cryptocurrency belonging to its customers.
Sanctions Breach Fine Pending
Moreover, it had been six weeks after the company declared it would stop U.S. operations due to regulatory uncertainties. And just three weeks before the Securities and Exchange Commission accused the company of running an unregistered securities exchange when the filing was finally made.
Bittrex Global, which is based in Liechtenstein and caters to consumers outside of the United States, is unaffected by the bankruptcy.
Furthermore, court documents reveal that the United States authorities have opposed Bittrex’s intention to refund clients. Since the exchange still owes millions of dollars to the Financial Crimes Enforcement Network for sanctions breaches.
Bittrex, along with Celsius, FTX, BlockFi, and Genesis, is just one of several major businesses in the cryptocurrency space that declared bankruptcy in the previous year due to market instability.
Moreover, Banq, a subsidiary of cryptocurrency custodian Prime Trust, reportedly filed for bankruptcy in Nevada on Tuesday, adding to the growing list. On June 8th, Prime Trust, the parent business of Banq, was acquired by cryptocurrency custodian BitGo.
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