According to Reuters, Bittrex U.S. shutdown plan meets court approval after legal battle with SEC. Assets returned to customers, creditors paid in full. $143M withdrawn during bankruptcy.
Crypto exchange Bittrex has received bankruptcy court approval to shut down its U.S. operations, following a legal battle with the U.S. Securities and Exchange Commission (SEC). The bankruptcy plan, approved by U.S. Bankruptcy Judge Brendan Shannon, allows Bittrex to wind down its operations and pay remaining creditors in full.
Legal Battle with the U.S. SEC Leads to Bittrex U.S. Shutdown
Bittrex filed for bankruptcy protection in May after being charged by the SEC with operating an unregistered securities exchange. The company decided to close its U.S. operations and return assets to customers, reaching a $24 million settlement with the SEC in August. Unlike other bankrupt crypto companies, Bittrex did not have a funding shortfall and did not lock customers out of their accounts.
Customers were encouraged to withdraw funds before the bankruptcy filing. Bittrex estimated that it would have money left over after customer withdrawals, as some accounts were inactive or abandoned. The majority of remaining Bittrex accounts have less than $100 in assets.
The company‘s non-U.S. operations based in Liechtenstein, known as Bittrex Global, are unaffected by the bankruptcy. Bittrex attorney Patricia Tomasco stated that customers had withdrawn approximately $143 million in crypto during the bankruptcy process. The shutdown of Bittrex’s U.S. operations marks the end of a tumultuous period for the exchange.