{"id":20157,"date":"2023-06-08T17:48:04","date_gmt":"2023-06-08T21:48:04","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/us-justice-department-objects-to-bittrexs-plan-to-repay-customers-in-bankruptcy-proceedings\/"},"modified":"2023-06-08T17:48:05","modified_gmt":"2023-06-08T21:48:05","slug":"us-justice-department-objects-to-bittrexs-plan-to-repay-customers-in-bankruptcy-proceedings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=20157","title":{"rendered":"US Justice Department Objects to Bittrex\u2019s Plan To Repay Customers in Bankruptcy Proceedings"},"content":{"rendered":"<div>\n<p>The US Department of Justice objected to a proposal by crypto exchange Bittrex to return money to customers as part of its liquidation plan.\u00a0<\/p>\n<p>Bittrex filed for bankruptcy in May in a federal court in Delaware after facing scrutiny from both the Justice Department and the US Securities and Exchange Commission.\u00a0<\/p>\n<p>The exchange shut down US operations <u>earlier<\/u> this year after it was fined $53 million by the Treasury\u2019s Office of Foreign Assets Control and Finance Crime Enforcement Network after they said Bittrex failed to prevent customers in Iran, Cuba and other sanctioned nations from using its platform.\u00a0<\/p>\n<p>The SEC later <u>charged<\/u> Bittrex in April for operating as an unregistered exchange, broker and clearing agency.\u00a0<\/p>\n<h2>DOJ\u2019s objections\u00a0<\/h2>\n<p>The DOJ objected to Bittrex\u2019s \u201cmotion for authorization to honor customer withdrawals\u201d on Wednesday, in part saying it was premature.<\/p>\n<p>\u201cWhile allowing customers to withdraw cryptocurrency assets may speed resolution of this case, no reason exists to determine ownership issues now to allow customer withdrawal,\u201d the Justice Department said.<\/p>\n<p>\u201cFairness and equity demand that if the OFAC and FinCEN Debts cannot be paid in full by confirmation, the United States should have a chance to prove that the cryptocurrency assets belong to the Debtors and can be clawed back from the customers as prepetition preferences and preconfirmation sub rosa distributions,\u201d the department added.<\/p>\n<p>Bittrex is one of many firms that filed for bankruptcy over the past year.\u00a0<\/p>\n<p>Infamously, crypto exchange FTX filed for bankruptcy after a news report from CoinDesk revealed that affiliated crypto hedge fund Alameda were closely tied leading to questions about the exchange\u2019s solvency.<\/p>\n<p>Exchanges are also facing heat from the SEC.<\/p>\n<p>This past week, the agency sued Binance and its CEO Changpeng Zhao, also known as CZ, over their \u201cblatant disregard of the federal securities laws.\u201d<\/p>\n<p>Separately, the SEC brought charges against Coinbase for not registering with the agency.\u00a0<\/p>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/cryptonews.com\/news\/us-justice-department-objects-bittrexs-plan-repay-customers-bankruptcy-proceedings.htm\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Department of Justice objected to a proposal by crypto exchange Bittrex to return money to customers as part of its liquidation plan.\u00a0 Bittrex filed for bankruptcy in May in a federal court in Delaware after facing scrutiny from both the Justice Department and the US Securities and Exchange Commission.\u00a0 The exchange shut down [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-20157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO 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