The U.S. government has objected to the bankrupt crypto exchange Bittrex's repayment plan for refunding customers in cash and crypto. In a recent court filing, the government stated that the Bittrex companies have not explained why it is important to settle ownership disputes over crypto assets before the bankruptcy plan is confirmed. The objection came nearly one month after Bittrex filed for Chapter 11 bankruptcy protection in the U.S. - In the bankruptcy filing, the company reported more than 100,000 creditors.
- The bankruptcy filing concerns the firm's Seattle-based entity, two entities in Malta, and an affiliated entity dubbed Desolation Holdings LLC.
- The exchange's Liechtenstein-based global entity, Bittrex Global GmbH, was excluded from the bankruptcy process, and the company said it does not plan to halt its global operations.
- The firm asked for court permission to allow customers to withdraw their holdings four days after it filed for bankruptcy.
- Bittrex's U.S. arm currently has customer assets of $50M in cash and $250M in crypto.
- The Maltese entity also holds $120M of customer funds in cash and crypto.
- The court will hold a hearing on Bitrex's plan to let withdrawals on June 14.
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