BlockFi, the bankrupt crypto lending firm, and the US Department of Justice (DOJ) have reached a settlement, ending a lawsuit over a $35 million asset transfer.
The Dispute
The DOJ wanted to seize $35 million from BlockFi, claiming the money belonged to two Estonian nationals involved in a fraud case. They had obtained warrants to claim these assets. However, BlockFi’s bankruptcy complicated things. Unsecured creditors sued the DOJ, worried that the seizure would reduce the money available for them. The DOJ argued that the bankruptcy court couldn’t stop the government from seizing the assets.
The Settlement
After two years of legal battles, both sides agreed to drop the case. Judge Michael B. Kaplan approved the dismissal, meaning the case can’t be reopened. Each party will cover their own legal costs.
BlockFi’s Bankruptcy
Remember, BlockFi filed for bankruptcy in 2022 after the collapse of FTX. They owed around $10 billion to 100,000 creditors, including big names like Ankura Trust and the SEC.
Crypto Market Update
On a brighter note, the total crypto market cap is currently around $3.64 trillion, up slightly. Bitcoin still dominates, holding about 63.9% of the market. This week is important for crypto regulation, with the US House expected to debate several key bills aimed at creating a better regulatory environment for digital assets.