On July 12, the bankruptcy administrator of BlockFi and the U.S. Department of Justice (DOJ) reached an agreement to dismiss a lawsuit involving the transfer of 35 million dollars in encryption 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 in BlockFi accounts belonging to two Estonian citizens, claiming it was related to a criminal fraud case.
According to the settlement terms, this case is "dismissed and cannot be retried," with both parties bearing their own legal costs. It is worth noting that BlockFi declared bankruptcy after the FTX collapse in November 2022, currently owing approximately $10 billion to around 100,000 creditors, and has set April 28, 2024, as the date for clients to withdraw the remaining funds.