BlockFi, DOJ close the book on $35 mln dispute – Details inside

Key Points

1. Judge Michael B. Kaplan approved the settlement between BlockFi and the DOJ in the U.S. Bankruptcy Court for the District of New Jersey.

2. The legal dispute began in November 2022 after FTX's collapse, with BlockFi later resolving a $1 billion claim with FTX and Alameda Research through an $875 million settlement in March 2023.

3. BlockFi's CEO attributed the firm's collapse to FTX founder Sam Bankman-Fried's actions, and by September 2023, the court sanctioned BlockFi's Chapter 11 plan to repay over 10,000 creditors, with the company owing around $10 billion.

4. The DOJ has demonstrated growing vigilance in policing the crypto space, including seizing $225.3 million in USDT tied to fraudulent schemes and shutting down 145 sites linked to the BidenCash darknet.

5. BlockFi set a 28th April 2024 deadline for customers to retrieve their crypto assets and concluded its bankruptcy proceedings in May 2024.