BlockFi bankruptcy administrator settles $35 million lawsuit with DOJ

PANews reported on July 12 that according to Cointelegraph, the BlockFi bankruptcy administrator and the U.S. Department of Justice (DOJ) have reached a settlement 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 local time. According to the terms of the settlement, the case was "dismissed and no further litigation was allowed", and both parties bear their own legal costs. It is worth noting that BlockFi has declared bankruptcy since the collapse of FTX in November 2022. It currently owes a total of $10 billion to about 100,000 creditors and has set a deadline of April 28, 2024 for customers to withdraw their remaining crypto assets. It is reported that the case originated in May 2023, when the DOJ attempted to seize funds belonging to two Estonian citizens in the BlockFi account, saying it was related to a criminal fraud case.