Bitprismia

BlockFi bankruptcy administrator and DOJ agree to dismiss $35M lawsuit

2025-07-12 07:43:04

Main Idea

BlockFi's bankruptcy administrator and the US Department of Justice (DOJ) have settled and dismissed a $35 million lawsuit involving crypto asset transfers, with the agreement approved by a US bankruptcy court.

Key Points

1. The settlement dismisses a $35 million lawsuit seeking to transfer crypto assets from BlockFi to the US government, approved by Judge Michael B. Kaplan.

2. The DOJ claimed it had warrants to seize funds from BlockFi accounts of two Estonian citizens in an unrelated criminal fraud case.

3. The case was dismissed with prejudice, meaning it cannot be refiled, and each party will bear its own legal fees.

4. BlockFi previously reached an $875 million settlement with FTX and Alameda Research, resolving around $1 billion in claims.

5. BlockFi declared bankruptcy in November 2022 following FTX's collapse and set a withdrawal deadline of April 28, 2024, for customers.

Description

BlockFi’s bankruptcy administrator and the DOJ have settled a $35 million crypto asset transfer lawsuit.

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