{"id":262619,"date":"2025-07-13T22:01:09","date_gmt":"2025-07-13T22:01:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/262619\/"},"modified":"2025-07-13T22:01:09","modified_gmt":"2025-07-13T22:01:09","slug":"blockfi-doj-close-the-book-on-35-mln-dispute-details-inside","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/262619\/","title":{"rendered":"BlockFi, DOJ close the book on $35 mln dispute \u2013 Details inside"},"content":{"rendered":"

\t\t\t\t\t\t\t\tKey Takeaways<\/strong><\/p>\n

BlockFi has reached a final settlement with the U.S. Department of Justice, ending a $35 million legal dispute tied to seized crypto assets.<\/p>\n

The long-standing legal dispute involving crypto lender BlockFi has officially reached its conclusion. <\/p>\n

A recent settlement<\/a> between BlockFi\u2019s bankruptcy administrator and the U.S. Department of Justice has put an end to a $35 million lawsuit over seized crypto assets.<\/p>\n

Judge Michael B. Kaplan approved the settlement<\/strong><\/p>\n

Approved by Judge Michael B. Kaplan in the U.S. Bankruptcy Court for the District of New Jersey, the agreement dismisses the case with prejudice, ensuring it cannot be reopened.<\/p>\n

Both parties have agreed to cover their own legal expenses.<\/p>\n

Interestingly, the DOJ clarified that the seized assets were part of a criminal investigation into two Estonian nationals, not directly connected to BlockFi\u2019s bankruptcy.<\/p>\n

During the proceedings, the DOJ had argued that the bankruptcy court lacked the authority to block the asset transfer, turning the dispute into a question of legal jurisdiction as much as recovery.<\/p>\n

A bankruptcy saga full of ripple effects<\/strong><\/p>\n

This newly approved settlement marks a pivotal moment in BlockFi\u2019s broader bankruptcy<\/a> saga, which began in November 2022 after FTX\u2019s collapse triggered the firm\u2019s financial downfall. <\/p>\n

Following this, in March 2023, the company also resolved a $1 billion claim with FTX and Alameda Research through an $875 million settlement. <\/p>\n

Remarking on this, CEO Zac Prince attributed the firm\u2019s collapse directly to FTX founder Sam Bankman-Fried\u2019s actions. <\/p>\n

By September 2023, the court sanctioned BlockFi\u2019s Chapter 11 plan to repay over 10,000 creditors, with the company still owing around $10 billion.<\/p>\n

Fast-forward to 2024, BlockFi then set a 28th April 2024 deadline for customers to retrieve their crypto assets.<\/p>\n

Finally, in May 2024, BlockFi began winding down its web operations, teaming up with Coinbase to assist eligible users, such as retail loan holders and interest account clients, in recovering remaining funds.<\/p>\n

With these years of struggle, the case finally concluded. <\/p>\n

What do these cases hint at?<\/strong><\/p>\n

Naturally, BlockFi\u2019s collapse serves as a cautionary tale for crypto lenders entangled with high-risk counterparties.<\/p>\n

At the same time, it also highlights how the U.S. Department of Justice has demonstrated growing vigilance in policing the crypto space. <\/p>\n

Beyond overseeing BlockFi\u2019s legal resolution, the DOJ has taken decisive action to dismantle crypto-related crime networks, seizing<\/a> $225.3 million in USDT tied to fraudulent investment schemes.\u00a0<\/p>\n

It also shut down<\/a>\u00a0145 sites linked to the BidenCash darknet marketplace. <\/p>\n

These developments highlight a critical shift toward stronger enforcement and accountability in the digital asset ecosystem.<\/p>\n

\t\t\t\t\t\t\t\t\t\t\tNext: Chainlink breaks $15 \u2013 4 factors backing LINK\u2019s push to $20<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways BlockFi has reached a final settlement with the U.S. Department of Justice, ending a $35 million…\n","protected":false},"author":2,"featured_media":262620,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-262619","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114848181999741662","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/262619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=262619"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/262619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/262620"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=262619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=262619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=262619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}