Key Points:
The company’s U.S. subsidiary declared bankruptcy on May 8 after authorities accused it of running an unlawful stock exchange, and after striking a $30 million deal with the Treasury Department, it permitted Iran, Cuba, and Crimea to conduct business with Asia’s clients.
But, the US government’s Financial Crimes Enforcement Network (FinCEN) contended that classifying creditors into subcategories outside of confirmation hearings would be improper, according to the government document. Bittrex could not explain why determining ownership of crypto assets was required prior to certifying the bankruptcy plan was essential.
According to reports, Bittrex’s US office has $50 million in client cash and $250 million in customer cryptocurrencies. Previously, lawyers for the firm informed a Delaware court that the Malta-based company, which also filed for bankruptcy, had $120 million in customer cash and cryptocurrency and enough assets in both to satisfy withdrawals. On June 14, a hearing will be held to discuss Bittrex’s proposal to enable withdrawals.
Bittrex filed for bankruptcy in Delaware, USA, on May 8. This will have no impact on Bittrex Global’s operations, and the exchange will continue to offer services to clients outside of the United States.
According to a court filing released by bankruptcy tracker Chapter 11 Dockets, the exchange has over 100,000 creditors with estimated obligations and assets ranging from $500 million to $1 billion.
Bittrex’s US subsidiary laid off 80 employees in February and stated in March that it would shut all operations by the end of April. The Securities and Exchange Commission (SEC) of the United States launched a complaint against Bittrex and its CEO in mid-April, accusing them of running a national stock exchange, brokerage, and clearinghouse without registration.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.
Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…
Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…
Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
This website uses cookies.