The US government rejects Bittrex's customer repayment proposal

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Der Versuch von Bittrex, Kundengelder zurückzugeben, stieß in den Vereinigten Staaten auf erhebliche Hindernisse, was Bedenken hinsichtlich der vorgeschlagenen Lösung für den Insolvenzfall der Krypto-Börse aufkommen ließ. Das Unternehmen beantragte im Mai in Delaware Insolvenzschutz nach Kapitel 11, weniger als einen Monat nachdem die US-Börsenaufsicht SEC das Unternehmen wegen Betriebes einer nicht registrierten Börse angeklagt hatte. Zwei weitere Geschäftsbereiche – Bittrex Malta Ltd. und Bittrex Malta Holdings Ltd. – beantragten ebenfalls Insolvenzschutz beim US-amerikanischen Insolvenzgericht für den Bezirk Delaware. Der Krypto-Abteilung des Unternehmens wird vorgeworfen, gegen Bundesgesetze, einschließlich des Bankgeheimnisgesetzes, verstoßen zu haben und Geschäfte mit Ausländern in sanktionierten Ländern …
Bittrex's attempt to return customer funds met with considerable obstacles in the United States, which caused concerns about the proposed solution for the bankruptcy case of the crypto exchange. In May, the company applied for insolvency protection according to Chapter 11 in May, less than a month after the US stock exchange supervision SEC had charged the company due to the company of an unregistered stock exchange. Two other business areas - Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd. -also applied for insolvency protection from the US bankruptcy court for the Delaware district. The company's crypto department is accused of violating federal laws, including the Banking Secretary Act, and business with foreigners in sanctioned countries ... (Symbolbild/KNAT)

The attempt by Bittrex to return customer funds met with considerable obstacles in the United States, which caused concerns about the proposed solution for the insolvency case of the crypto exchange.

The company applied for insolvency protection in May 11 in May, less than a month after the US stock exchange supervision SEC had charged the company due to the company of an unregistered stock exchange. Two other business areas - Bittrex Malta Ltd. and Bittrex Malta Holdings Ltd. -also applied for insolvency protection from the US bankruptcy court for the Delaware district.

The company's crypto department is accused of violating federal laws, including the Banking Secretary Act, and doing business with foreigners in sanctioned countries.

grounds of opposition from the US government

The US government's objection to Bittrex's proposal, which aims to compensate the customer, is another difficult blow and is considered a coordinated attempt to mutilate the industry without actually protecting investors.

It was actually known that the state thwarted crypto insolvency proposals. As a result of state interventions, Binance, from the 1 billion dollar deal of the bankruptcy crypto loan Voyager Digital to buy his assets and referred to an "uncertain regulatory climate".

In the government's court file, it says:

"The debtors have not explained why the ownership issues of cryptocurrency systems have to be clarified before confirming the plan. Finally, it is inappropriate to split creditors outside the hearing for confirmation into subordinate classes. For these reasons, which are discussed in more detail below, the application must be rejected."

In the court file submitted by the government, it is said in detail as a reason for objection:

  • The critical provider standard does not support the desired relief.
  • It is premature;
  • It is illegally attempted to subordinate creditors outside of a plan

The bitter end of Bittrex in the United States

Bittrex was once one of the largest exchanges in the United States. Before the stock exchange slipped into bankruptcy, she announced her plans to leave the country and blamed the hostile regulatory environment.

The company has assets and liabilities, each with an estimated value between 500 million and one billion US dollars. This emerges from an earlier court file in which the existence of over 100,000 creditors was also presented.

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