Bittrex’s Customer Account Withdrawal Bid Is Opposed by Justice

The Justice Department challenged bankrupt crypto exchange Bittrex Inc.'s court request to honor customer withdrawals of cash and digital assets, saying the move would lead to premature creditor distributions while harming the government’s ability to recover $29.3 million in settlement funds.

After filing for bankruptcy in early May, Bittrex quickly asked the US Bankruptcy Court for the District of Delaware to allow account holders to withdraw currency and crypto holdings from the platform.

But the company’s bid to do right by customers is procedurally improper and would limit its ability to pay a settlement to the US Treasury for failing ...