- They do not allow clients to withdraw funds immediately
- And demand a lawsuit
The US government has rejected Bittrex’s offer to refund customers.
Recall that on May 8, Bittrex filed an application with the United States Bankruptcy Court for the District of Delaware. At the time, the company indicated that it had more than 100,000 creditors, assets ranging from $500 million to $1 billion, and bankruptcy liabilities ranging from $500 million to $1 billion.
After 4 days, the crypto exchange went to court and asked to allow clients to immediately withdraw assets without litigation. This would help them avoid legal costs and time delays. But the US government refused. Among the reasons, they cited “it’s wrong to play favorites”.
The authorities decided that they should first hold hearings to approve the bankruptcy plan. The next meeting on this issue will be held on June 14.
The bankruptcy involves Seattle-based Bittrex, Inc., two Bittrex units in Malta, and a subsidiary, Desolation Holdings LLC. But Bittrex Global GmbH, a global exchange based in Liechtenstein, is not involved in the process.
Bittrex was one of the oldest and most recognizable US crypto exchanges. The company was founded in 2014 by former employees of Microsoft, Amazon and BlackBerry. They will continue their activities on the international platform.
Meanwhile, litigation between Coinbase and the SEC continues. The crypto exchange stated that it will not close staking and will not delist the disputed tokens until a court decision.