Court Decision for Bankrupt Exchange: ‘Withdrawal Transactions Will Be Allowed!’

crypto exchange Bittrex’s US armwill open for customer withdrawals Thursday, following the Delaware bankruptcy court ruling.

Bankrupt Crypto Exchange Bittrex USA To Allow Withdrawals From Thursday

The move comes after a Delaware court ruling on Tuesday.

The exchange filed for bankruptcy in May, and its legal bid to allow clients access to assets once again faced opposition from the US government, which says it still owes millions for sanctions violations.

In Tuesday’s ruling, Judge Brendan Shannon authorized Bittrex USA and its affiliates to allow customers with undisputed, uncontingent, and settled debts to withdraw crypto assets and fiat currency from the Borrowers’ trading platform to the extent of these claims.

The decision does not determine who legally owns these assets or whether customer claims should be preferred over government claims.

Patty Tomasco, a partner at the law firm Quinn Emmanuel, which represents Bittrex, said in an email that the platform will be up and running for withdrawals on Thursday, June 15.

The exchange suffered millions of dollars in withdrawals in March after it said it planned to close its US operations the following month. The unit filed for bankruptcy on May 8.

The company said it held $300 million in customer cash and crypto in its US arm as of May 10. While bankruptcy proceedings normally involve freezing transactions, the company argued that it wants customers to be able to access their money without protracted lawsuits.

*Not investment advice.