BlockFi bankruptcy administrator settles $35 million lawsuit with DOJ

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According to Cointelegraph, Foresight News reports that the BlockFi bankruptcy administrator and the U.S. Department of Justice (DOJ) have reached an agreement 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. Under the settlement terms, the case was "dismissed and cannot be refiled," with each party bearing their own legal costs. It is worth noting that BlockFi declared bankruptcy in November 2022 after 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.

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