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

According to a report by Cointelegraph on July 12, 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 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 from BlockFi accounts belonging to two Estonian citizens, claiming it was related to a criminal fraud case. Under the settlement terms, the case is "dismissed with prejudice," and both parties will bear their own legal fees. Notably, BlockFi declared bankruptcy in November 2022 following the collapse of FTX, currently owing around $10 billion to approximately 100,000 creditors, and has set April 28, 2024, as the deadline for clients to withdraw remaining encryption assets.