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The US Affiliate of Bittrex, the cryptocurrency platform, is reportedly going to allow user withdrawals from June 15. The announcement follows an order signed by US District Judge Brendan Shannon of the Delaware court. Bittrex has been facing scrutiny from US regulators, who have accused it of violations of anti-money laundering procedures and investor protection laws. The company filed for bankruptcy earlier this year, assuring customers that their funds are safe and secure.
Legal Battles
CoinDesk reports that Bittrex’s American subsidiary will finally honour clients’ withdrawals thanks to the relief granted by Judge Shannon. Previous attempts to compensate customers were denied by the US government, who argued that the motion was ongoing and “premature.” The company has been facing regulatory pressure since last year, following a $53 million penalty over alleged anti-money laundering violations.
Facing Multiple Challenges
The US regulatory pressure forced Bittrex to cease its operations in the States at the end of March, but it assured its users that their funds would remain safe and accessible. Despite this assurance, it faced yet another challenge when the company received a Wells Notice from the US SEC in April. The notice claimed that Bittrex had violated investor protection laws. As a result, the company filed for Chapter 11 bankruptcy protection, which only affected its US and Maltese subsidiaries and not Bittrex Global.
