According to ChainCatcher and Cointelegraph, BlockFi's bankruptcy administrator has reached an agreement with the U.S. Department of Justice (DOJ) to dismiss a lawsuit involving a $35 million crypto asset transfer. New Jersey Bankruptcy Court Judge Michael B. Kaplan approved the agreement on Friday.
The case originated in May 2023, when the DOJ attempted to seize funds in BlockFi accounts belonging to two Estonian citizens, claiming it was related to a criminal fraud case. According to the settlement terms, the case was "dismissed and cannot be refiled," with each party bearing their own legal costs.
Notably, BlockFi declared bankruptcy in November 2022 following the FTX collapse, currently owing approximately 100,000 creditors a total of $10 billion, and has set April 28, 2024, as the final deadline for customers to withdraw remaining crypto assets.
