The Blockfi bankruptcy officials, and the US Department of Justice (doj) reached a settlement to dismiss a $ 35 million lawsuit in the transfer of encryption assets, which includes the encryption lender.
The agreement was approved by Judge Michael B. Kaplan is from the American Banking Court for New Jersey Province on Friday, According to To court files.
The lawsuit, filed in May 2023, sought to transfer more than 35 million dollars of Blockfi encryption to the United States government. The Ministry of Justice said it has orders to seize money from Blockfi accounts for Atterian citizens in a criminal fraud case that has nothing to do with Blockfi bankruptcy.
At that time, the Justice Ministry argued that the US Banking Court of New Jersey had no jurisdiction to prevent Blockfi from transferring assets. The conflict arose during bankruptcy procedures in Blockfi.
Related to: California cancels the Blockfi lending license after two years of bankruptcy
A case refused with bias
Under the condition approved by both parties, the case was rejected with bias, which means that it cannot be renovated. Each party will bear its legal fees and costs as part of the settlement.
Mohsen Megiji, the official of the Luklviz Plan, represents the Chefir Company in the case. The Ministry of Justice is represented by the senior trial lawyer, Seth B. Shapiro and his team from the commercial litigation branch in the civil section.
In May last year, Blockfi announced plans to close its web platform with Coinbase to help customers withdraw their remaining money. Re qualified users, including those with BLOCKFI interest accounts, retail loans and private customer accounts, can use Coinbase to withdraw.
The company declared bankruptcy in November 2022 after the FTX collapsed, then set a withdrawal deadline on April 28, 2024, to customers to restore their encryption possessions.
Related to: BLOCKFI and 3AC settlement get green but still sealed
Blockfi reaches the settlement with FTX
In March of last year, BLOCKFI also reached a $ 875 million settlement with FTX and Alameeda Research Estates, and about a billion dollars in claims. Zac Prince’s CEO that the actions of the FTX Sam Bankman-Fric founded directly in Blockfi.
The Banking Court approved the Blockfi 11th Plan in September 2023 to pay more than 10,000 creditors. BLOCKFI owes about $ 10 billion for more than 100,000 creditors, including the main debts of the three most important creditors and Three Arrows Capital.
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The post BlockFi Bankruptcy Administrator and DOJ Settle $35M Crypto Lawsuit first appeared on Investorempires.com.
