U.S. Govt Objects Bittrex’s Repayment Plan
According to a Wednesday court filing, a proposal by bankrupt crypto exchange Bittrex to restore customer cash and cryptocurrency is being challenged by the United States, which is still owed millions for sanctions violations.
The firm’s US unit declared bankruptcy on May 8 after regulators accused it of operating an illegal stock exchange and after reaching a $30 million settlement with the Treasury for accepting business from customers in Iran, Cuba, and Crimea.
Four days later, the corporation asked the court for authorization to allow consumers to withdraw their holdings without incurring the cost and time of litigation. The US government, whose Financial Crimes Enforcement Network (FinCEN) is owing $5 million, believes it is wrong to pick winners and losers.
Bittrex’s US division has $50 million in client cash and $250 million in customer cryptocurrency. According to lawyers representing the firm, the Maltese operational company, which also filed for bankruptcy, has $120 million in customer cash and cryptocurrency, and both have adequate assets to honour withdrawals.
(With inputs from Shikha singh)
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