Bittrex, a cryptocurrency platform operating in the United States, will allow user withdrawals starting June 15, following a recent court order. US District Judge Brendan Shannon of a Delaware court granted permission for this action, allowing the company’s American affiliates to proceed.
Over the past few months, American regulators have scrutinized Bittrex, accusing the platform of violating anti-money laundering protocols and investor protection laws. To address the issue, the company filed for bankruptcy in early May, assuring its customers that their funds remain safe and unaffected.
CoinDesk reports that Bittrex’s American subsidiary will comply with the client’s withdrawal request on June 15, following authorization given by US District Judge Shannon. The court order gives the company the necessary powers to enforce the assistance provided.
Initially, the US government opposed Bittrex’s wish to compensate its customers, considering such action premature. The authorities argue that determining ownership of cryptocurrency assets should occur after confirming the plan and not agreeing to the separation of creditors into separate classes beyond a confirmation hearing. These reasons led the authorities to reject the motion.
Bittrex faced a significant challenge 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 suspended its operations in the United States at the end of March, stressing the safety and availability of user funds for withdrawal.
The company’s problems 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.
Weeks later, Bittrex is seeking Chapter 11 bankruptcy protection for its US and Malta subsidiaries. Notably, this submission does not affect Bittrex Global, indicating a separate standing for the company’s global arm.
Following a court order, Bittrex US affiliates will begin withdrawing users on June 15th. The company faced regulatory scrutiny, resulting in bankruptcy filings while assuring customers of the safety of their funds. Despite initial opposition, the court allowed Bittrex to continue with the waivers granted.