BlockFi bankruptcy administrator reaches a settlement with the U.S. Department of Justice, dismisses $35 million lawsuit
Online reports that BlockFi's bankruptcy administrator 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. New Jersey Bankruptcy Court Judge Michael B. Kaplan approved the agreement on Friday. The case originated in May 2023, when DOJ tried to seize funds belonging to two Estonia citizens in a BlockFi account, saying it was related to a criminal fraud case. According to the terms of the settlement, the case was "dismissed and no longer sued," and each party bore legal costs. It is worth noting that BlockFi has declared bankruptcy since the FTX crash in November 2022. It currently owes a total of US$10 billion to approximately 100,000 creditors and has set a deadline of April 28, 2024 for customers to withdraw remaining crypto assets.
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