The
American branch of the Bittrex crypto exchange, which declared bankruptcy over
a month ago, is prepared to pay out funds to its customers. The process is set
to begin tomorrow (Thursday), driven by a decision from the Delaware bankruptcy
court.
In
yesterday’s (Tuesday) verdict, Judge Brendan Shannon authorized Bittrex US to
pay customers who do not have any additional legal claims against the platform.
However,
the latest decision does not clarify who is the legal owner of the cash and
cryptocurrencies frozen in the accounts of the American branch of the exchange.
It also does not explain whether the claims of end customers are more important
than the claims of the US government against the exchange. The judge also
acknowledged that a clawback may occur in the future.
The controversy
surrounding the payouts occurred because the United States believes Bittrex
wanted to take a ‘shortcut’ and settle the matter as quickly as possible. In
this way, it was allegedly trying to avoid the financial consequences sought by
local regulatory bodies.
The Downfall of Bittrex in
the US
Bittrex’s
problems began towards the end of 2022 when the United States began to increase
regulatory pressure on…
