Javier Hernandez Bittrex US, the cryptocurrency exchange that has ceased operations in the United States, has recently implemented a new plan that permits its American customers to withdraw both cryptocurrency and fiat currency from the platform, provided they meet the necessary regulatory requirements. The U.S. bankruptcy court in Delaware granted approval for this withdrawal arrangement on Tuesday.
Customer Withdrawals Enabled by Bittrex US Cryptocurrency Exchange
On May 8, 2023, Bittrex US filed for Chapter 11 bankruptcy protection, stating liabilities between $500 million and $1 billion, with over 100,000 creditors. Prior to the bankruptcy filing, the U.S. Securities and Exchange Commission (SEC) had taken legal action against Bittrex for operating an unregistered exchange, broker, and clearing agency, as well as listing unregistered cryptocurrency securities.
Bittrex recently sent emails to its U.S. customers, notifying them of the approval from the U.S. bankruptcy court to enable withdrawals. However, there is a condition: users must update their know-your-customer (KYC) information and agree to the latest terms of service. Bittrex claims that this step is “necessary to comply with state and federal regulations.”
Withdrawals became available on June 15, 2023, and the company has provided resources for identity verification, withdrawal instructions, and wire instructions. Bittrex states that customers have until August 31, 2023, to withdraw any remaining funds. While cryptocurrency withdrawals are straightforward, fiat withdrawals require customers to submit an application to link their bank account. Additionally, customers who choose to wire funds through Bittrex will incur a $25 wire fee.
What are your thoughts on Bittrex US allowing customers to withdraw funds during its bankruptcy proceedings? Feel free to share your opinions on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about withdrawal arrangements
Can customers of Bittrex US still withdraw funds during bankruptcy proceedings?
Yes, Bittrex US has introduced a plan that allows American customers to withdraw both cryptocurrency and fiat currency from the platform, provided they meet the necessary regulatory criteria.
What are the requirements for customers to be eligible for withdrawals?
Customers need to update their know-your-customer (KYC) information and agree to the latest terms of service in order to be eligible for withdrawals.
When did withdrawals open and how long do customers have to withdraw their funds?
Withdrawals became available on June 15, 2023. Customers have until August 31, 2023, to withdraw any remaining funds.
Are cryptocurrency withdrawals and fiat withdrawals treated differently?
Cryptocurrency withdrawals are relatively simple, while fiat withdrawals require customers to submit an application to link their bank account.
Is there a fee for wire transfers through Bittrex?
Yes, there is a $25 wire fee for customers who choose to wire funds through Bittrex.
What is the background of Bittrex US and its bankruptcy proceedings?
Bittrex US filed for Chapter 11 bankruptcy protection on May 8, 2023, citing liabilities between $500 million and $1 billion. Prior to the bankruptcy filing, the U.S. Securities and Exchange Commission (SEC) had taken legal action against Bittrex for various regulatory violations.
More about withdrawal arrangements
- Bittrex US
- U.S. bankruptcy court
- Chapter 11 bankruptcy
- U.S. Securities and Exchange Commission (SEC)
- Know Your Customer (KYC) requirements
3 comments
Finally, Bittrex US givin us a chance 2 cash out durin their bankruptsy mess. But make sure 2 follow the rules, update KYC n agree 2 terms. Time is runnin out, so act fast!
bittrex us now allowin customers 2 withdraw crpto n fiat durin bankrupsy! get ur $$$ b4 its 2 late, u gotta upd8 ur KYC n agree 2 terms tho. bittrex rocks!
OMG, Bittrex US in bankruptsy but still lettin us take our $$. Gotta upd8 KYC info n agree 2 terms, but it’s worth it. Hurry up n withdraw b4 it’s too late!