Earlier this year, Seattle-based cryptocurrency exchange Bittrex announced its intention to wind down all of its US operations following intense regulatory scrutiny by the Securities and Exchange Commission (SEC).
After filing for Chapter 11 bankruptcy protection in a federal court in the US state of Delaware earlier, Seattle-based cryptocurrency exchange Bittrex Inc. has been granted permission to allow its customers who meet the necessary regulatory requirements to access their accounts and withdraw their remaining digital assets. According to the announcement, Bittrex customers who have completed Know Your Customer (KYC) verifications and accepted the latest Terms of Service can access their accounts to request withdrawals.
From June 15 through August 31, the company has announced that eligible customers will be able to process their withdrawals. Meanwhile, US Bittrex users who don’t have credit can access their accounts but won’t have other features available to them.
“We are delighted that the court will allow us to allow clients to access their accounts and withdraw any remaining assets, and we hope our clients will take advantage of this opportunity. Our goal has always been to keep all of our clients complete through this process,” David Maria, General Counsel, Bittrex male.
Notably, the company has set the minimum withdrawable amount at $25 and users will have to submit proof of claim to court to access the remaining balances. For those intending to collect cash balances for a deceased person, Bittrex has indicated that they will have to provide supporting documents to prove they are the beneficiary along with proof of claim.
Bittrex falls grasp the claws of the SEC
Since the collapse of FTX and Alameda Research late last year, the US Securities and Exchange Commission (SEC) has stepped up its crackdown on crypto companies. Moreover, SEC Chairman Gary Gensler holds the notion that almost all crypto assets are unregistered securities. In mid-April this year, the Securities and Exchange Commission charged Bittrex and former CEO William Shihara with operating an unregistered securities exchange, broker and clearing agency.
Today we have charged crypto asset trading platform Bittrex Inc. and its co-founder and former CEO William Shihara to operate an unregistered national securities exchange, broker and clearing agency.https://t.co/kBsIFMp7ZA
– US Securities and Exchange Commission (SECGov) April 17, 2023
The Securities and Exchange Commission has argued that Bittrex has raised more than $1.3 billion in proceeds since 2017 from investors in the United States. Bittrex, which has been in operation since 2014, has been accused of prioritizing its profits over protecting customers by listing unregistered securities.
In its defense, Bittrex has insisted that the SEC regulates the crypto industry through enforcement, thus driving investors out.
“Bittrex has operated within the standards of the law at all times, and we look forward to establishing our standing in court.” male.
Meanwhile, several cryptocurrency exchanges including Coinbase Global Inc (NASDAQ:COIN) and Binance have been charged by the US Securities Commission (SEC) for listing unregistered securities including Cardano (ADA) and Polygon (). MATIC), BNB, Solana (SOL) and many more. .
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