The United States Justice Department has filed an objection to a motion by bankrupt cryptocurrency trading platform Bittrex to allow customers to withdraw their crypto and fiat. The U.S. Treasury’s Office of Foreign Asset Control is Bittrex’s biggest creditor, but its claim would be subordinated under the Bittrex proposal.
Bittrex was charged in October by both OFAC and the Treasury’s Financial Crimes Enforcement Network with sanctions violations for allowing individuals based in Crimea, Cuba, Iran, Sudan and Syria to carry put transactions from 2014 to 2017. The agencies assessed penalties of $24 million and $29 million, respectively.. It agreed to pay the $24 million of its penalty to FinCEN, receiving $5 million credit from FinCEN, while OFAC credited Bittrex $24 million, which remains Bittrex’s largest debt.