- A US district judge signed a court order on Tuesday allowing Bittrex customers to make withdrawals.
- The exchange shut down US operations earlier this year after it was fined by the Treasury’s Office of Foreign Assets Control and Finance Crime Enforcement Network.
- The SEC then charged Bittrex and its former CEO William Shirhara in April for operating as an unregistered exchange, broker and clearing agency.
Judge Signs Court Order Allowing Bittrex Customers To Make Withdrawals
US district judge Brendan L. Shannon signed a court order on Tuesday allowing Bittrex customers to make withdrawals following back and forth between the court and the US government. The Justice Department had objected to a proposal by the now bankrupt exchange to return money to customers as part of Bittrex’s liquidation plan.
Bittrex Facing Scrutiny From Regulators
Bittrex filed for bankruptcy in May in a federal court in Delaware after facing scrutiny from both the Justice Department and the US Securities and Exchange Commission. The exchange shut down US operations earlier this year after it was fined $53 million by the Treasury’s Office of Foreign Assets Control and Finance Crime Enforcement Network after they said Bittrex failed to prevent customers in Iran, Cuba and other sanctioned nations from using its platform.
SEC Charges Bittrex And Its Former CEO
The SEC then charged Bittrex and its former CEO William Shirhara in April for operating as an unregistered exchange, broker and clearing agency. The SEC said that OMG, Dash, ALGO, Monolith (TKN), Naga (NGC) and IHT Real Estate Protocol (IHT) were unregistered securities offerings while adding that it “improperly attempts to subordinate creditors outside of a plan.”
Bittrex Owes The Government Money
Notably, Bittrex also owes the government millions after law enforcement brought sanctions-related charges against the exchange last year.