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1.Highlight Gate Elements: Include Gate logo, app screens, merchandise or event collab products.
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BlockFi reaches a settlement with the U.S. Department of Justice, $35 million encryption asset lawsuit dismissed.
On July 12, BlockFi's bankruptcy administrator and the U.S. Department of Justice (DOJ) reached an agreement to dismiss a lawsuit involving the transfer of $35 million 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 may not be re-litigated," with each party bearing its own legal costs. Notably, 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 deadline for customers to withdraw remaining encryption assets.