BlockFi Settles $35 Million Crypto Dispute With US Department Of Justice
The U.S. Bankruptcy Court for the District of New Jersey approved the deal on Friday, according to court filing. Under the agreement, both parties consented to dismiss the case with prejudice—meaning the DOJ cannot refile the claim. Each side will also cover its own legal expenses
A long-running legal standoff between bankrupt crypto lender BlockFi and the U.S. Department of Justice ended in a dismissal. A federal judge approved a settlement that closes the $35 million asset transfer dispute for good.
The U.S. Bankruptcy Court for the District of New Jersey approved the deal on Friday, according to court filing. Under the agreement, both parties consented to dismiss the case with prejudice—meaning the DOJ cannot refile the claim. Each side will also cover its own legal expenses.
The case centered on crypto funds originally held in BlockFi accounts but tied to two Estonian citizens accused of fraud. Though unrelated to BlockFi’s operations, the DOJ argued it had valid warrants to seize the funds and attempted to claim them during BlockFi’s bankruptcy proceedings in 2023.
