BlockFi Trust Company LLC is immensely pleased to announce that an agreement has been reached between the company's Chapter 11 Trustee and the United States Department of Justice, resulting in the dismissal of a $35 million lawsuit.

On July 12th, the trustee of BlockFi reached an agreement with the U.S. Department of Justice (DOJ) to drop a lawsuit regarding a $35 million cryptocurrency asset transfer. New Jersey Bankruptcy Court Judge Michael B. Kaplan approved this agreement on Friday. The case originated from an incident in May 2023 when the DOJ tried to seize funds in BlockFi accounts belonging to two Estonian citizens, claiming a link to an ongoing criminal fraud case. Under the terms of the settlement, the case has been "dismissed with prejudice," and each party will be responsible for its own legal fees. It is important to note that BlockFi declared bankruptcy after the FTX collapse in November 2022 and currently owes approximately $10 billion to around 100,000 creditors. The deadline for customers to withdraw their remaining cryptocurrency assets has been set for April 28, 2024. (Cointelegraph)