Bittrex US, the now-defunct cryptocurrency exchange in the United States, has recently introduced a plan that permits American customers to withdraw crypto and fiat from the platform, provided they satisfy the required regulatory criteria. This withdrawal arrangement was approved on Tuesday by the U.S. bankruptcy court located in Delaware.
Cryptocurrency Exchange Bittrex US Enables Customer Withdrawals
On May 8, 2023, Bittrex US filed for Chapter 11 bankruptcy protection, citing liabilities ranging from $500 million to $1 billion and having over 100,000 creditors. Before the bankruptcy filing, the U.S. Securities and Exchange Commission (SEC) had sued Bittrex for running an unregistered exchange, broker, and clearing agency, and for listing unregistered crypto securities.
Bittrex sent emails to its U.S. customers this week, following approval from the U.S. bankruptcy court to enable withdrawals. However, there is a caveat: users must update their know-your-customer (KYC) information and agree to the latest terms of service. Bittrex asserts that this step is “necessary to comply with state and federal regulations.”
Withdrawals opened on June 15, 2023, and the company has provided resources for identity verification, withdrawal instructions, and wire instructions. “Customers have until August 31, 2023, to withdraw any remaining funds,” Bittrex states. While cryptocurrency withdrawals are relatively simple, fiat withdrawals require the submission of an application to link a bank account. Additionally, there is a $25 wire fee for customers who choose to wire funds through Bittrex.
What are your thoughts on Bittrex US allowing fund withdrawals for customers amidst its bankruptcy proceedings? Share your thoughts and opinions about this subject in the comments section below.
