The administrator of Blockfi’s bankruptcy wind-down and the US Department of Justice (DOJ) has signed an agreement to reject the $ 35 million crypto asset transfer case involving Crypto lender.
The agreement was reported on Friday, American Insolvency Court Judge Michael B. Was approved by the couple, According For court filing.
The case filed in May 2023 demanded the US government to transfer more than $ 35 million to crypto property from Blockfi. The DOJ said that he had a warrant to seize funds from blockfeed accounts of two Estonian citizens in case of a criminal fraud unrelated to the bankruptcy of blockfee.
At that time, the DOJ argued that there was no jurisdiction to prevent blockfee in the US bankruptcy court for New Jersey district. Controversy arose during the bankruptcy proceedings of Blockfi.
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Case dismissed with prejudice
As part of agreeing by both sides, the case was dismissed with prejudice, meaning that it cannot be refined. Each party will bear its legal fees and costs as part of settlement.
Plan Administrator Mohsin Meghji represented the Crypto firm in the case for Blockfi’s wind-down estate. The Department of Justice Represented Senior Testing Advocate Seth B. The commercial litigation of Civil Division was done by Shapiro and his team.
In May last year, Blockfi announced a plan to shut down its web platforms, while partnership with the coinbase to help customers withdraw their remaining funds. Eligible users, including people with blockfeed interest accounts, retail loans and private customer accounts, can use coinbase for return.
The company announced bankruptcy in November 2022 following the FTX collapse and later set the return deadline of 28 April 2024 to retrieve its crypto holdings to customers.
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Blockfi reaches disposal with FTX
In March last year, Blockfi also reached a disposal of $ 875 million with FTX and Almeda Research Estates, resolving about $ 1 billion in claims. CEO Zack Prince testified that the works of FTX founder Sam Bankman-Fride directly led to the bankruptcy of the block.
In September 2023, the bankruptcy court approved the Blockfi Chapter 11 scheme to repay more than 10,000 creditors. Blockfi owes about $ 10 billion for over 100,000 creditors, including major loans of its top three creditors and bankrupt hedge funds Three Arrow Capital.
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