The Bittrex cryptocurrency trading platform is expected to resume client withdrawals on June 15 following an order by a judge in the United States Bankruptcy Court for the District of Delaware. The decision does not resolve the issue of the subordination of the US government's claims, which had raised objections to its plan.
"The objections (if any) to the motion have been withdrawn, settled or quashed on the merits," Judge Brendan Shannon's June 13 order read. He went on to stipulate that nothing in the motion or order constituted a conclusion as to whether the crypto assets or transactions with them are securities.
The order also specified that it does not determine the priority of creditors or prohibit the United States from recovering assets from clients if they are not paid in full. Bittrex's largest creditor is the US Treasury's Office of Foreign Assets Control (OFAC), to which it owes $24 million.
Bittrex general counsel David Maria told Cointelegraph:
โWe are pleased that the court allows us to allow clients to access their accounts and withdraw any remaining assets, and we hope that our clients will take advantage of this opportunity. Our goal has always been to make all of our clients feel complete during this process.โ
Maria said that the platform is expected to be fully operational for withdrawals at 3:00 pm ET (7:00 UTC) on June 15.
Related: On Bittrex US Shutdown and SEC Actions: Bittrex Global CEO at Consensus 2023
Seattle-based Bittrex declared its intention to liquidate operations in the US at the end of April. It filed for bankruptcy in May after the US Securities and Exchange Commission. sued the exchange for unregistered securities transactions.
@Decision has landed on Bittrex Global.
He $ARB wallet is now open, and trading will begin shortly on https://t.co/WGrJdX34kU. pic.twitter.com/JT4hj9yULC
โBittrex Global (@BittrexGlobal) June 15, 2023
This all came after OFAC and the Treasury Financial Crimes Enforcement Network (FinCEN) assessed fines of $24 million and $29 million, respectively, for violating sanctions imposed on Crimea, Cuba, Iran, Sudan and Syria. The exchange received a credit worth $5 million from FinCEN and $24 million from OFAC at the time.
The US Department of Justice had opposed a Bittrex plan to reimburse customers, subservient to government claims.
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