BlockFi Settles $35M Dispute with DOJ Over Seized Crypto Assets

BlockFi's bankruptcy administrator has finalized a $35 million settlement with the U.S. Department of Justice, closing a legal dispute tied to seized cryptocurrency assets. Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey approved the agreement, dismissing the case with prejudice.

The DOJ clarified the seized assets were linked to a criminal investigation involving two Estonian nationals, unrelated to BlockFi's bankruptcy proceedings. Jurisdictional questions arose during litigation, with the DOJ contesting the bankruptcy court's authority over the asset transfer.

This resolution marks a significant milestone in BlockFi's bankruptcy saga, which began following FTX's collapse in November 2022. The crypto lender previously settled a separate $1 billion claim with FTX and Alameda Research in March 2023.