The administrator supervising the bankruptcy of Blockfi and the United States Ministry of Justice (DOJ) have reached a regulation to reject a trial of transferring cryptographic assets of $ 35 million involving the cryptographic lender.
The agreement was approved by judge Michael B. Kaplan of the American bankruptcy court for the district of New Jersey on Friday, according to legal files.
The trial, tabled in May 2023, sought to transfer more than $ 35 million in cryptographic assets from Blockfi to the United States government. The DoJ said he had mandates to seize the Blockfi account funds of two Estonian citizens in a case of criminal fraud unrelated to Blockfi’s bankruptcy.
At the time, the DoJ argued that the American bankruptcy court of the New Jersey district did not have the jurisdiction to prevent Blockfi from transferring assets. The dispute occurred during the bankruptcy procedure of Blockfi.
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Case rejected with prejudice
Under the stipulation agreed by the two parties, the case has been rejected with prejudice, which means that it cannot be refilled. Each party will bear its own legal costs and costs within the framework of the regulations.
Mohsin Meghji, administrator of the BlockFi drop in succession plan, represented the cryptographic firm in the case. The Ministry of Justice was represented by the main advisor to the Seth B. Shapiro trial and its team from the Civil Division Trade Department.
In May of last year, Blockfi announced its intention to close its web platform while associating Coinbase to help customers withdraw their remaining funds. Eligible users, including those with accounts of Blockfi interest, retail loans and private customer accounts, can use Coinbase for withdrawals.
The company declared bankruptcy in November 2022 following the collapse of FTX and subsequently set a deadline for withdrawal of April 28, 2024, so that customers can recover their cryptographic assets.
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Blockfi reaches the settlement with FTX
In March of last year, Blockfi also reached a regulation of $ 875 million with FTX and Alameda Research Estates, resolving approximately $ 1 billion in complaints. The CEO, Zac Prince, said that the actions of the founder of the FTX, Sam Bankman, were directly the bankruptcy of Blockfi.
The bankruptcy court approved the plan of chapter 11 of Blockfi in September 2023 to reimburse more than 10,000 creditors. Blockfi owes about $ 10 billion to more than 100,000 creditors, including major debts to its three main creditors and the three -arrow random hedgehist.
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