Bittrex, the cryptocurrency platform operating in the United States, is set to enable user withdrawals starting from June 15, following a recent court order. The US District Judge Brendan Shannon of the Delaware court granted permission for this action, allowing the company’s American affiliate to proceed accordingly.
Over the past few months, American regulators have scrutinized Bittrex, accusing the platform of breaching anti-money laundering protocols and investor protection laws. To address these concerns, the company filed for bankruptcy in early May, assuring its customers that their funds remained secure and unaffected.
CoinDesk reports that Bittrex’s American subsidiary will fulfill client withdrawal requests on June 15, following the authorization given by US District Judge Shannon. The court order grants the company the necessary authority to carry out the relief provided.
Initially, the US government opposed Bittrex’s desire to compensate its customers, deeming the motion premature. Authorities argued that determining ownership of cryptocurrency assets should occur after confirming the plan and disapproved of segregating creditors into separate classes outside the confirmation hearing. These reasons led to the authorities denying the motion.
Bittrex encountered significant challenges last fall when it faced a $53 million penalty imposed by US regulators for alleged violations of anti-money laundering laws. As a result, the platform ceased its operations in the United States by the end of March, emphasizing the security and availability of users’ funds for retrieval.
The company’s troubles did not end there, as it received a Wells Notice from the US Securities and Exchange Commission (SEC) in mid-April, accusing Bittrex of violating investor protection laws.
A few weeks later, Bittrex sought Chapter 11 bankruptcy protection for its US and Maltese subsidiaries. Notably, this filing did not affect Bittrex Global, indicating a separate standing for the global arm of the company.
Following a court order, Bittrex’s US affiliate will commence user withdrawals on June 15. The company has faced regulatory scrutiny, resulting in a bankruptcy filing while assuring customers of the safety of their funds. Despite initial opposition, the court authorized Bittrex to proceed with the relief granted.
