BlockFi's bankruptcy trustee reaches a settlement with the U.S. Department of Justice, dismissing a $35 million lawsuit

according to Cointelegraph, BlockFi's bankruptcy trustee has reached an agreement with the U.S. Department of Justice (DOJ) to dismiss a lawsuit involving the transfer of $35 million in cryptocurrency 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 BlockFi's accounts, claiming it was related to a criminal fraud case. According to the settlement terms, the case is "dismissed with prejudice," and both parties will bear their own legal costs.

It is worth noting that BlockFi declared bankruptcy following the collapse of FTX 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 cryptocurrency assets.