{"id":79928,"date":"2023-06-08T13:32:26","date_gmt":"2023-06-08T10:32:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=79928"},"modified":"2025-09-11T13:50:11","modified_gmt":"2025-09-11T10:50:11","slug":"bittrexs-plan-to-settle-obligations-faces-objections-from-us-authorities","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bittrexs-plan-to-settle-obligations-faces-objections-from-us-authorities\/","title":{"rendered":"Bittrex’s plan to settle obligations faces objections from US authorities"},"content":{"rendered":"

Representatives of the US authorities challenged<\/a> the proposal by Bittrex to allow customer withdrawals before the restructuring plan is approved by the bankruptcy court.<\/p>\n

On May 8, the exchange filed for bankruptcy<\/a>. According to the complaint, the company’s assets and liabilities amount to between $500 million and $1 billion. The number of creditors exceeds 100,000.<\/p>\n

This preceded a series of events. In April, Bittrex announced the winding down of operations<\/a> in the United States, citing regulatory uncertainty. Subsequently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company<\/a> for violations of the law.<\/p>\n

Following the bankruptcy filing, Bittrex asked the court to allow customers to withdraw funds without costs and expenses related to the restructuring.<\/p>\n

According to lawyers, the U.S. subsidiary has $50 million in fiat currency and $250 million in digital assets. The Malta subsidiary, also mentioned in the filing, has funds totaling $120 million. The funds available to both entities are enough to fully satisfy creditor claims, the lawyers said.<\/p>\n

The authorities put forward several objections to the exchange’s proposal for restitution. Bittrex has not yet settled a debt to FinCEN<\/span> of $5 million. This is part of about $30 million that the company agreed to pay in October 2022 as part of a settlement of allegations in violation of the U.S. sanctions regime.<\/p>\n

Government attorneys also pointed to improper categorization of creditors in Bittrex’s proposal. They emphasised that such decisions are the court’s prerogative when approving the restructuring plan.<\/p>\n

Earlier in 2020, Bittrex tried to lure<\/a> users away from Binance amid Binance’s troubles with Roskomnadzor. In June 2023, the SEC filed a lawsuit<\/a> against the largest cryptocurrency exchange, and subsequently made claims against Coinbase<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. authorities challenged Bittrex’s proposal to allow customer withdrawals before the bankruptcy court approves the restructuring plan.<\/p>\n","protected":false},"author":1,"featured_media":79929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,720,1162],"class_list":["post-79928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-bittrex","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=79928"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79928\/revisions"}],"predecessor-version":[{"id":79930,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/79928\/revisions\/79930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/79929"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=79928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=79928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=79928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}