According to the June 7 court filing, bankrupt crypto exchange Bittrex’s proposal to return customer cash and crypto has faced opposition from the US government.
The company’s US office filed for bankruptcy on May 8 after regulators accused it of operating an illegal stock exchange. Four days later, the company requested court permission to allow customers to withdraw their assets without the expense and delay of litigation. The US government, which is a $5 million creditor from the Financial Crimes Enforcement Network (FinCEN), said that these deception attempts were not true.
The Case on the Subject will be Heared on 14 June
In the application filed by the government, the statements were used: “It is inappropriate to categorize creditors into secondary classes outside of the confirmation hearing”.
Bittrex’s US arm holds $50 million in client cash and $250 million in crypto assets. Lawyers representing the company had previously told the Delaware court that the Maltese operating company, which filed for bankruptcy, had $120 million in customer cash and crypto, and both had sufficient assets to process withdrawals.
The hearing on Bittrex’s plan to allow withdrawals will take place on June 14.
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