2023-06-08 20:58:00
The recent proposal by the Bittrex trading platform, the US version of which is now bankrupt, to return the cryptocurrency funds of its former clients is currently facing a series of legal challenges due to heavy fines imposed by the US government according to a report for the hearing published last Wednesday.
The American version of the platform filed for bankruptcy on 8 May under the protection of Chapter 11 of the United States Bankruptcy Actthis after regulators initially accused it of massive fraud due to the fact that Bittrex allowed customers residing in Iran, Cuba or Crimea to use its platform.
An authorization that goes against the economic sanctions imposed by the United States on these various countries for geopolitical reasons. As a result, Bittrex was forced to pay close to 30 million dollars with the US Treasury.
Four days later, the platform asked the court for permission to let its former clients withdraw their assets without having to wait for the end of the long legal proceedings currently underway. Faced with this request, the American government announced its refusal and let it be known that it was not normal to show favoritism according to it. In this regard, it is stated in the judicial report published a few days ago:
“To silence creditors outside of the confirmation hearing is inappropriate. Thus, the Bittrex platform was unable to demonstrate why issues related to the ownership of crypto-assets should be given priority by the court. »
Note that the American version of Bittrex holds the equivalent of more than $50 million from its customers and nearly $250 million in cryptocurrencies. A new hearing regarding a potential withdrawal of user funds will take place on June 14.
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