BlockFi and DOJ Settle $35M Crypto Asset Transfer Lawsuit
- A settlement was reached to dismiss a lawsuit involving over $35 million in crypto assets from BlockFi to the US government.
- The agreement was approved by Judge Michael B. Kaplan in the US Bankruptcy Court for New Jersey.
- The lawsuit, filed in May, claimed the DOJ had warrants to seize funds from BlockFi accounts linked to two Estonian citizens.
- Under the settlement, the case was dismissed with prejudice, preventing it from being refiled.
- BlockFi declared bankruptcy in November following the collapse of FTX and has a withdrawal deadline set for April 28, 2024.
The dismissal of this lawsuit allows BlockFi to continue its bankruptcy proceedings without this legal hurdle while ensuring that each party bears its own costs. This case emerged during BlockFi’s ongoing financial restructuring efforts after significant losses attributed to external factors.
With approximately $10 billion owed to over100,000 creditors, BlockFi’s situation remains critical as it seeks to repay debts amidst its Chapter 11 plan approval in September.(Source)
