Bittrex To US Users: Withdraw Your Crypto Or Risk Running Into Issues

Scott Matherson

1 year ago

3 mins read

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Bittrex Inc., the US arm of the crypto exchange Bittrex Global, has sent a reminder email to its users on the need to withdraw their funds “as soon as possible.” Although the deadline for withdrawal of funds remains August 31, the crypto exchange has urged users to do it soon to give their team “sufficient time to resolve any unforeseen issues.”

“Bittrex Inc. has been granted permission by the United States Bankruptcy Court to allow customers who meet the necessary regulatory requirements to access their accounts and withdraw any remaining assets.” the email read.

Bittrex asks US users to withdraw crypto before deadline

How It All Went Down For Bittrex

On March 31, 2023, Bittrex announced on its Twitter platform that it was winding down its US operations due to the “continued regulatory uncertainty.”

The tweet read:

Due to continued regulatory uncertainty, we have made the difficult decision to wind down our U.S. operations, effective April 30, 2023. All funds are safe and can be fully withdrawn immediately.

However, the exchange’s woes were just starting as on April 17, 2023, the United States Securities and Exchange Commission (SEC) charged the crypto exchange for violating securities laws, including trading unregistered securities on its platform. This had caused many to believe that the impending SEC charges may have caused the crypto exchange to announce it was winding back in March.

This belief may not be far from the truth as Bittrex released a statement on its Twitter platform following the SEC’s charges.

Bittrex said in its statement:

We are disappointed with the SEC’s decision to bring an enforcement action against Bittrex as part of Chairman Gensler’s larger crusade to drive cryptocurrency out of the United States. The impact of the SEC’s approach of regulation by enforcement will have a chilling effect on not just cryptocurrency in the United States, but on blockchain technology and innovation in general.

The impact of this regulatory action was significant for the exchange and on May 8, 2023, Bittrex filed for Chapter 11 bankruptcy protection. This came following the SEC’s clampdown on the trading platform. Its filings also suggested that the firm was in deep financial woes as it stated that it had more than 100,000 creditors.

Bittrex’s Approach Is Commendable

Unlike what was seen with FTX and other crypto platforms that experienced ‘free fall’ bankruptcy, Bittrex’s case is quite different. From all indications, the company was fully prepared for the moments leading up to its bankruptcy filing.

According to Patterson Belknap Webb & Tyler LLP, Bittrex had taken “extensive action pre-petition to ensure full customer recovery, and plan to swiftly bring these chapter 11 cases to a responsible conclusion.”

These actions include the ‘winding up’ announcement on March 31, which was going to become effective on April 30, halting deposits (without halting withdrawals), and giving customers enough time to withdraw their funds.

Even at the time of filing, Bittrex continued to reiterate the fact that customers’ assets were safe and would be returned. This customer-first approach by Bittrex is commendable, considering how customers of different crypto platforms remain in limbo as to when (or if ever) they will regain their funds.

It is also worth mentioning that Bittrex went as far as obtaining a $7 million loan in Bitcoin (BTC) from its parent company, Aquila Holdings, to pay back its customers, according to a Reuters report on May 10.

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Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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