– Majority of Bittrex US customers failed to claim their crypto assets
– Deadline to claim assets passed on August 31
– Only 35,972 customers actually made claims, representing less than 3% of identified customers
– Total value of claimed assets is $143.76 million
– Bittrex US was not insolvent and planned to return 100% of customer assets through bankruptcy proceedings
– Customers expressed reluctance to provide personal information for small sums of money
– KYC process required extensive personal information and acceptance of updated Terms of Service
– Some customers faced slow and disjointed communication during the withdrawal process
– Unclaimed customer funds will be used to pay other claims and regulatory fines
– Bittrex US announced closure due to regulatory pressure and lack of precise requirements
– SEC charged Bittrex US and its co-founder and former CEO for operating unregistered exchange and earning significant revenues from transaction fees
– Bittrex US filed for bankruptcy in May, while Bittrex Global continues operations for customers outside the US.
The majority of Bittrex US customers have failed to claim their assets after the deadline for doing so passed on August 31. Only 35,972 customers, less than 3% of those identified by the court, actually submitted claims, resulting in a total value of $143.76 million. Bittrex had plans to return 100% of customer assets through its bankruptcy proceedings, but the lack of engagement from customers is attributed to inactive accounts and low balances. Many customers were reluctant to provide extensive personal information for what they considered to be small sums. To make claims, users had to undergo an extensive Know Your Customer (KYC) process, which involved providing personal information and accepting updated Terms of Service. Some customers faced slow and disjointed communication during the withdrawal process, leading them to abandon their attempts to retrieve their funds. Unclaimed customer funds will be used to pay other claims and regulatory fines. Bittrex announced in March that it is shutting down US operations due to regulatory pressure and a lack of precise requirements, and shortly after, the SEC charged Bittrex for operating an unregistered national securities exchange. The exchange filed for bankruptcy in May, but the bankruptcy filing will not affect Bittrex Global, which serves customers outside the United States.
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