The administrator of Blockfi, a cryptocurrency financial service company, has paid an asset transfer trial in crypto of $ 35 million with the United States Ministry of Justice (DOJ). According to Bloomberg, the agreement was approved on Friday by the judge of the New Jersey bankruptcy court, Michael B. Kaplan, clarifying the judicial borders in the crises of cryptographic assets.
Blockfi settling with the United States Ministry of Justice
The case initially deposited in May 2023, saying that the Doj’s attempt to seize funds in blockfi accounts linked to two Estonian nationals, has now been resolved. The judge of the district court of New Jersey, Mr. Kaplan, rejected the trial with prejudice, which means that he cannot be reopened and no future complaint can be filed on the disputed assets.
This dismissal approved by the court allows Blockfi to go bankrupt to continue without any other legal obstacle linked to its cryptographic assets. The two parties agreed to bear their own legal costs, reflecting a pragmatic solution to the dispute.
The emphasis put by Blockfi on the reimbursement of creditors
After setting the trial with the DoJ, Blockfi can in depth the reimbursement of creditors and customers following its bankruptcy procedure. By April 2025, 90% of American customers claimed their distributions, while only 43% of international customers had been reimbursed.
A deadline has been set for May 15, 2025, to claim the remaining funds, indicating that part of the creditors’ complaints is still late. While targeting a 100%reimbursement, Blockfi also said that he was actively working to guarantee that eligible customers receive their distributions.
Blockfi Resolution of complaints with FTX
The regulation of the US Ministry of Justice trial added another feather to the Blockfi hat to solve problems with companies. In March 2023, Blockfi reached a regulation of $ 875 million with the FTX and Alameda Research Estates. These actions are the key stages of the company’s bankruptcy process and to fulfill its obligations towards creditors.
Final thought
Unlike most bankrupt companies, Blockfi has prioritized the definition of a structured reimbursement strategy for its creditors. The company planned to maximize recovery despite legal obstacles and worked with diligence to fulfill these obligations.
