BlockFi Bankruptcy Administrators Reach Settlement with U.S. Department of Justice, Dismissing $35 Million Lawsuit

Foresight News reports, according to Cointelegraph, that BlockFi’s bankruptcy administrators and the U.S. Department of Justice (DOJ) have reached an agreement to dismiss a lawsuit involving the transfer of $35 million in crypto assets. The agreement was approved on Friday by New Jersey bankruptcy court judge Michael B. Kaplan. The case originated in May 2023, when the DOJ attempted to seize funds in BlockFi accounts belonging to two Estonian citizens, claiming the funds were linked to a criminal fraud case. Under the terms of the settlement, the case is “dismissed with prejudice,” and both parties will bear their own legal costs. Notably, BlockFi filed for bankruptcy in November 2022 following the collapse of FTX, and currently owes approximately $10 billion to around 100,000 creditors. The company has set April 28, 2024, as the final deadline for customers to withdraw their remaining crypto assets.