• Bittrex US is allowing customers to make withdrawals starting June 15.
• The move comes after the firm faced accusations from US regulators for violating anti-money laundering procedures and investor protection laws.
• The real issues for Bittrex started last autumn when the company failed to register with the Financial Crimes Enforcement Network (FinCEN).

Bittrex US Allows Customer Withdrawals

Bittrex US, the American subsidiary of the cryptocurrency platform Bittrex, will reportedly allow users to withdraw their funds on June 15. This permission follows a few days after US District Judge Brendan Shannon from the Delaware court signed an order authorizing all necessary actions for effectuating customer relief.

Accusations From Regulators

The exchange has faced accusations from US regulators in recent months for violating anti-money laundering procedures and investor protection laws. In response, Bittrex filed for bankruptcy at the beginning of May, assuring customers that their funds are “safe and secure”.

Opposition From Government

The government initially opposed Bittrex’s motion to compensate customers, stating that it was “premature”. They argued that there was no need to determine ownership of cryptocurrency assets before confirmation of a plan and that siloing creditors into subordinated classes outside of the confirmation hearing was improper.

Issues Started Last Autumn

The real problems for Bittrex began last autumn when it failed to register with the Financial Crimes Enforcement Network (FinCEN). Consequently, regulators accused it of operating illegally as an unlicensed money service business while also denying access to customer accounts without proper notice or explanation.

Conclusion

All in all, Bittrex is now finally able to honor customer withdrawals this week following approval by a Delaware court judge and opposition from US authorities regarding compensation requests. It remains unclear what other consequences this situation may have on Bittrex’s operations in future months or years due to its failure to comply with national regulations last year.