According to Foresight News, the U.S. government opposes the customer fund return plan proposed by the bankrupt cryptocurrency exchange Bittrex, for the following reasons: the Critical Vendor Standard does not support the plan, and implementing the plan without paying suppliers will cause suppliers to stop providing operations and services to the debtor, leading to the collapse of the debtor's business and making restructuring impossible; the motion is immature to resolve disputed claims and issues; it inappropriately attempts to exclude creditors from the plan, and it is inappropriate to determine affiliation or classification issues at this time. The hearing related to Bittrex will be held on June 14, 2023.
Previously, after being sued by the SEC, Bittrex sought court permission to allow customers to withdraw their holdings without paying legal costs and delays.
