Bittrex can resume processing crypto withdrawals, per the US Bankruptcy Court.

Seattle-based cryptocurrency exchange Bittrex Inc. has filed for Chapter 11 bankruptcy protection in a US Delaware federal court. However, the court has granted the exchange permission to allow its customers, who meet the necessary regulatory requirements, to access their accounts and withdraw their remaining digital assets. Customers who have completed the Know Your Customer (KYC) verification processes and accepted the latest Terms of Service can access their accounts to request withdrawals. Eligible customers will be able to process their withdrawals from June 15 until August 31. Customers in the United States with no balance can access their accounts, but no other features will be available to them. Bittrex has set the minimum withdrawable amount at $25, and users will have to submit a proof of claim with the court to access the remaining balances. For those intending to collect cash balances for a deceased person, Bittrex noted that they will have to provide supporting documents to show they are the beneficiary alongside proof of claim.

Bittrex Falls Understand the SEC Claws

The United States Securities and Exchange Commission (SEC) has intensified its crackdown on crypto firms since the implosion of FTX and Alameda Research late last year. SEC Chair Gary Gensler holds the notion that almost all crypto assets are unregistered securities. Mid-April this year, the SEC charged Bittrex and former CEO William Shihara for operating an unregistered securities exchange, broker, and clearing agency. The SEC argued that Bittrex has accrued more than $1.3 billion in revenue since 2017 from investors in the United States. Bittrex, which has been in operation since 2014, was accused of prioritizing its profits over customers’ protection through the listing of unregistered securities.

In its defense, Bittrex insisted that the SEC is regulating the crypto industry through enforcement, thus pushing investors overseas. Several cryptocurrency exchanges including Coinbase Global Inc (NASDAQ: COIN) and Binance have also been charged by the United States SEC for listing unregistered securities including Cardano ( ADA ), Polygon (MATIC), BNB, and Solana ( SOL ), among many others.

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