By Bittrex crypto exchange plans to release crypto that had been frozen to its customers from sanctioned countries.
Ziya Sadr, a former user of Bittrex, posted a letter on Twitter, according to this letter, Bittrex is reaching out to its previous customers in regions where they cannot legally offer their services. These former customers had their accounts suspended due to the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
Bittrex filed an application requesting permission to release the frozen funds back to their owners back in May 2018, the application was recently granted, and thus the affected customers can now withdraw their funds from the exchange.
Restrictions put in place for former customers to access their funds
Several restrictions have been put in place for the account owners who are affected by this new development. The account holder must create a new account at a different crypto exchange that is not located in Syria, Cuba, Iran, or Crimea. Failure to comply will lead to the account holder being subjected to OFAC sanctions.
The account holder must also create a Bittrex support account indicating where the funds should be sent. The support account must be in the same email as the original Bittrex account.
There is a minimum withdrawal limit, which is three times the sanction fee. If the balance in the user’s wallet is below the minimum withdrawal limit, the user will not be able to access the funds. The account users who qualify to access their accounts should make their withdrawal requests to Bittrex by 15th March 2020.
Accounts Suspension due to Economic Sanctions
Bittrex account owners from sanctioned regions were not able to access the platform since October 2017; however, Iranian residents were able to access the exchange platform despite Iran being a sanctioned nation.
Bittrex acknowledged this and cited an unintentional gap on the exchange’s compliance procedures, which allowed Iran residents to access the platform and even participate in it.
When Bittrex was requested to comment on the number of accounts they suspended due to OFAC, their spokesperson stated that Bittrex was bound by the law to adhere to federal economic sanctions prohibiting U.S. companies from conducting financial transactions with residents of a particular nation. Now that Bittrex has received permission from the Office of Foreign Assets Control, all affected account holders that are eligible to make withdrawals can withdraw their funds to another exchange. The spokesperson also said that all affected account holders would be contacted directly by Bittrex.
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