BlockFi bankruptcy administrator reaches settlement with US Department of Justice, dismisses $35 million lawsuit

CoinRank News: BlockFis 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 the DOJ attempted to seize funds belonging to two Estonian citizens in BlockFis accounts, claiming it was related to a criminal fraud case. Under the terms of the settlement, the case was dismissed and no further litigation was allowed, with each party bearing its own legal expenses. It is worth noting that BlockFi has been declared bankrupt since the collapse of FTX in November 2022, and 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. (Cointelegraph)