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US Government Challenges Bankrupt Bittrex’s Proposal To Return Customer Cash and Crypto

The US government has filed a legal challenge against Bittrex's proposal to return customer cash and crypto, as the company still owes millions for sanctions violations. Bittrex's US arm filed for bankruptcy in May after being accused of operating an unlawful securities exchange and reaching a settlement with the Treasury.

The company sought court permission to allow customers to withdraw their holdings without litigation, but the US government, which is owed $5m, argues that it is unfair to treat creditors differently. Bittrex's US arm holds $50m in customer cash and $250m in customer crypto, while the Maltese operating company has $120m in customer cash and crypto.

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