In May 2023, the DOJ sought to effect a transfer of $35 million worth of assets in BlockFi accounts to the US government. Notably, DOJ representatives claimed these funds belonged to two Estonian nationals involved in a fraud case and had obtained legal warrants to assert ownership of these illicit proceeds.
Therefore, a group of unsecured creditors issued a lawsuit against the DOJ claiming that such transfers could impact potential asset recoveries. Meanwhile, the DOJ argued that the US Bankruptcy Court for the District of New Jersey – at which the case had been filed – could not neutralize the government’s claims to these assets.
The joint resolution was brought before Judge Michael B. Kaplan of the US Bankruptcy Court for the District of New Jersey on Friday, July 11, who approved the case on the day. Notably, both parties agreed to dismiss the case with prejudice, meaning it cannot be refiled. Meanwhile, each party is expected to bear its own legal fees and costs.
Following its bankruptcy filing in 2022, BlockFi reportedly owed 100,000 creditors an estimated $10 billion, including major debts to prominent names such as Ankura Trust, the US Securities and Exchange Commission, and defunct hedge fund Three Arrows.
In other news, the total crypto market is valued at $3.64 trillion following a 0.17% gain in the past day. Bitcoin, the maiden cryptocurrency, retains an unrivalled 63.9% market dominance, boasting of total market share valued at $2.33 trillion.
