Bittrex U.S to Resume Withdrawals Starting From June 15

The now bankrupt cryptocurrency exchange’s US unit decided to begin withdrawals following the judgment of the Delaware bankruptcy court. It was among one of the leading crypto exchanges before its bankruptcy.

Bittrex opted for bankruptcy in May 2023; the exchange wrapped up its United States operations by the end of April 2023. The exchange’s bankruptcy might not affect its operation in other regions.

In the June 13 hearing, Judge Brendan Shannon permitted the cryptocurrency exchange to allow its customers’ holdings of undisputed, noncontingent, and liquidated claims to withdraw digital assets and fiat currency from debtors’ trading platforms to the extent of such claims.

According to the court filing total assets and liability of Bittrex amount to $500 Million US Dollars and $1 Billion. The decision to file for bankruptcy might be a reason for an SEC lawsuit against the Seattle-based exchange on the charge of selling unregistered securities.

Moreover, after the lawsuit, the crypto exchange denied the allegations of selling unregistered securities and noted that assets listed on its platform are neither securities nor investment contracts.

It should be noted that Bittrex had agreed to pay a fine of $29 Million to the United States Treasury Department. The exchange was involved in violation of sanctions on other countries and Anti-Money Laundering laws.

Over thousands of transactions were processed by the exchange after it announced to wrap its United States operations. The news of halting services has scared the crypto users in the US, making them withdraw their holdings as early as possible.

Significant Bankruptcies of Crypto Industry in 2022- 2023

FTX’s bankruptcy was one of the most disastrous events in the crypto industry. The unprecedented demise of Sam Bankman Fried’s crypto exchange stirred the entire industry, wiping out hundreds of billions of dollars in less than 78 hours.

Following the Bahamian crypto exchange’s demise, numerous crypto-focused companies opted for bankruptcy. BlockFi was also having business relationships with FTX.

Genesis and two subsidiaries applied for Chapter 11 bankruptcy protection in January 2023. Crypto(dot)com had to initiate its second round of layoffs in the past six months.

Celsius, the globally popular crypto lender, filed for Chapter-11 bankruptcy in July 2021. It was one of the lenders that filed for bankruptcy during the pandemic. Earlier in 2022, the company kicked off the bidding process, seeking bidders who could guide its business out of bankruptcy.

The bidding to acquire the New Jersey-based crypto lender was won by Fahrenheit, a consortium that includes blockchain venture capital firm Arrington Capital.

After winning the bidding process, Fahrenheit said it would provide experienced employees, including financial support and technology, to the bankrupt crypto lender to establish it in the market.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing