- They won’t allow customers to withdraw funds immediately
- And demand a court case
The U.S. government has rejected Bittrex’s offer to refund customers.
Remind that Bittrex filed for bankruptcy in U.S. Bankruptcy Court for Delaware County on May 8. At the time, the company said it had more than 100,000 creditors, assets ranging from $500 million to $1 billion and obligations in bankruptcy proceedings ranging from $500 million to $1 billion.
Four days later, the crypto exchange went to court and asked to allow customers to withdraw assets immediately without a trial.. This would help them avoid legal costs and time delays. But the U.S. government refused to. Among the reasons they cited was that “playing favorites is wrong.”
The authorities decided that a bankruptcy plan approval hearing should be held first. The next hearing on the matter is June 14.
The bankruptcy concerns Bittrex, Inc. based in Seattle, two Bittrex units in Malta and a subsidiary of 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 U.S. crypto exchanges. The company was founded in 2014 by former employees of Microsoft, Amazon, and BlackBerry. They will continue to operate on the international platform.
In the meantime, litigation between Coinbase and the SEC continues. The cryptocurrency exchange said it would not shut down the stacking and would not delist the disputed tokens until the court ruled.