Crypto exchange Bittrex’s U.S. shutdown approved at bankruptcy court.

The bankruptcy court has granted approval for the shutdown of the U.S. operations of crypto exchange Bittrex. This decision marks a significant development in the cryptocurrency industry.

Crypto exchange Bittrex’s U.S. shutdown approved at bankruptcy court.

Bittrex U.S. shutdown bankruptcy: The crypto exchange, previously sued by the SEC for unregistered securities trading, has gained approval from the bankruptcy court to cease its U.S. operations. The approval came after months of efforts by the company to return crypto deposits to its customers.

The U.S. Bankruptcy Judge Brendan Shannon gave the green light to Bittrex’s bankruptcy plan during a court hearing in Wilmington, Delaware. This clears the way for the company to emerge from bankruptcy with a wind-down plan to pay off remaining creditors fully.

Bittrex filed for bankruptcy protection in May following the SEC’s charges. Instead of challenging the allegations, the exchange decided to shut down its operations in the United States and return assets to its customers. In August, Bittrex reached a $24 million settlement with the SEC to resolve the claims against it.

Compared to other cryptocurrency companies that have faced bankruptcy in recent times, Bittrex did not suffer from a funding shortfall. It also did not lock customers out of their accounts. Instead, Bittrex encouraged its customers to withdraw their funds before filing for bankruptcy.

According to Bittrex, its non-U.S. operations based in Liechtenstein, known as Bittrex Global, will not be affected by the bankruptcy filing. The company estimated in September that it would have funds remaining after completing customer withdrawals. It pointed out that some accounts had become inactive and customers could not be reached, while others had small balances that had essentially been abandoned.

During the bankruptcy process, customers withdrew approximately $143 million in cryptocurrency, and around three-quarters of the remaining accounts had less than $100 in assets. Some customers decided to abandon their assets rather than go through the process of verifying their identity for the withdrawal process.

Bittrex’s bankruptcy case is labeled as Bittrex Inc and is being handled by the U.S. Bankruptcy Court for the District of Delaware.

Overall, the bankruptcy court’s approval allows Bittrex to finalize its wind-down plan and bring closure to its U.S. operations while ensuring that all remaining creditors are fully paid.

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