TechFlow reported, according to Reuters, that cryptocurrency exchange Bittrex received bankruptcy court approval on Monday to shut down its U.S. operations. U.S. Bankruptcy Judge Brendan Shannon approved Bittrex's reorganization plan during a court hearing in Wilmington, Delaware, allowing the company to exit bankruptcy through a liquidation plan that fully repays its remaining creditors.
Bittrex filed for bankruptcy protection in May this year shortly after the U.S. Securities and Exchange Commission (SEC) accused it of operating an unregistered securities exchange. Following the SEC lawsuit, Bittrex chose to wind down its U.S. operations and return assets to customers. In August, the company reached a $24 million settlement with the SEC. Bittrex stated that the bankruptcy filing would not affect Bittrex Global, which continues serving non-U.S. customers; its non-U.S. business is headquartered in Liechtenstein.
In September, Bittrex estimated there would be leftover funds after completing customer withdrawals, citing a number of long-inactive accounts whose owners could not be contacted, as well as numerous small customer accounts that were essentially abandoned. When Bittrex notified customers of its planned shutdown in April, clients had already withdrawn approximately $423 million in crypto assets. Additionally, Bittrex attorney Patricia Tomasco said during a September court hearing that about 36,000 customers withdrew roughly $143 million in cryptocurrency during the bankruptcy period.
