On Thursday, around $300 million in assets will be available for withdrawal from Bittrex US.
According to the sources familiar with the matter, as Bittrex US, the American subsidiary of the cryptocurrency exchange Bittrex, emerges from bankruptcy, it is set to permit its customers to withdraw their funds starting June 15th.
The Delaware bankruptcy court's recent ruling is the foundation for this move, following the company's bankruptcy filing on May 8th. At that time, the company disclosed that it held $300 million in customer assets in the US branch as of May 10th.
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Even though bankruptcy proceedings typically necessitate a transaction freeze, Bittrex highlighted that it hopes customers could access their funds without lengthy legal battles.
Underlining the contentiousness of this development, the US government has voiced opposition, stating that the company still owed the government for sanctions breaches.
Judge Brendan Shannon gave the authorization for Bittrex US and its associated entities to allow their clientele to extract cryptocurrency and fiat assets from the crypto exchange's platform, granted that the claims are "undisputed, noncontingent, and liquidated."
Nonetheless, this ruling doesn't solidify the legal ownership of the aforementioned assets nor confirms a preference for customer claims over those of the government, as specified in the judgment. Future clawbacks may occur as the situation evolves.
Patricia Tomasco, a partner at the law firm Quinn Emanuel and Bittrex's legal representative, confirmed that "the platform will be up and running for withdrawals on Thursday, June 15th."
Paralleling issues experienced by fellow cryptocurrency exchanges like Binance and Coinbase, Bittrex faced legal charges from US regulators, citing that it violated federal law by operating as an unregistered securities exchange.
The recent development of allowing withdrawals hints towards a small victory for Bittrex's clientele, who have been left in financial limbo since the crypto exchange's bankruptcy. However, the long-term resolution of the company's legal battles remains uncertain.
