Bittrex Gets Court Authority to Cease Operations in the United States

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Last Updated on October 31, 2023 by Bitfinsider

According to court documents, during a hearing in Delaware on September 30, Judge Brendan Shannon accepted the company’s liquidation plan, which was designed to pay off the remaining creditors.

The month of May saw Bittrex’s first filing for bankruptcy, not long after the SEC accused it of running an unlicensed securities exchange.

Additionally, Bittrex was charged by the SEC with working with the issuers of cryptocurrency assets to remove remarks that would have sparked an inquiry into whether these assets ought to be categorized as securities.

Following the SEC complaint, the exchange decided to end its business in the United States and restore assets to consumers. In August, a $24 million settlement was struck with the SEC.

Bittrex made it clear that Bittrex Global, its overseas division that serves clients outside of the US, will not be impacted by its bankruptcy proceedings. Liechtenstein serves as the home base for the business’s international activities.

Unlike other cryptocurrency companies that have filed for bankruptcy in the last 18 months, Bittrex did not go through a financial crisis or at first limit user access to their accounts. Customers were advised by the corporation to remove their assets prior to formally declaring bankruptcy.

After customer withdrawals, the exchange projected in September that it would have extra money. Long-term inactivity and little client accounts that had all but been abandoned were identified by the corporation as contributory causes.

Patricia Tomasco, an attorney for Bittrex, claims that throughout the bankruptcy process, over 36,000 users removed nearly $143 million in cryptocurrency holdings. More than 75% of the remaining Bittrex accounts, she added, have less than $100 in value.

According to Tomasco, some clients have chosen to give up on their assets rather than go through the identification verification procedure needed in order to make withdrawals.

She remarked, “I don’t want to give you all that information just to get $35.”

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