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

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

The administrator overseeing BlockFi’s bankruptcy wind-down and the US Department of Justice (DOJ) have reached a settlement to dismiss a $35 million crypto asset transfer lawsuit involving the crypto lender.

The agreement was approved by Judge Michael B. Kaplan of the US Bankruptcy Court for the District of New Jersey on Friday, according to court filings.

The lawsuit, filed in May 2023, sought to transfer over $35 million in crypto assets from BlockFi to the US government. The DOJ said it had warrants to seize the funds from the BlockFi accounts of two Estonian citizens in a criminal fraud case unrelated to BlockFi’s bankruptcy.

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