BlockFi and the U.S. Department of Justice have settled a $35 million legal dispute regarding cryptocurrency assets, paving the way for handling creditor repayments during the bankruptcy process.
This agreement approved by the New Jersey Bankruptcy Court helps BlockFi focus on fulfilling its debt obligations after resolving complex legal disputes with the U.S. Department of Justice and other stakeholders, notably the dispute with FTX.
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BlockFi has reached an agreement with the U.S. Department of Justice to settle a $35 million cryptocurrency asset dispute.
The New Jersey court approved the settlement of the lawsuit, allowing BlockFi to continue repaying creditors steadily.
Since the beginning of 2023, BlockFi has also resolved the $875 million debt related to the FTX bankruptcy.
How has BlockFi resolved disputes with the U.S. Department of Justice?
The dispute over the transfer of $35 million in cryptocurrency assets between BlockFi and the U.S. Department of Justice was successfully resolved in 2023 with the approval of the New Jersey Bankruptcy Court.
The lawsuit filed in May 2023 focused on the Department of Justice wanting to freeze BlockFi's cryptocurrency accounts related to two individuals from Estonia. According to Judge Michael B. Kaplan's ruling on May 17, 2023, the lawsuit was permanently dismissed, prohibiting any reopening or further claims against those assets.
“The dismissal of the lawsuit has created a clear legal framework for BlockFi to continue managing cryptocurrency assets to repay creditors without further legal disputes.”
Michael B. Kaplan, Judge of the New Jersey Bankruptcy Court, 2023
This marks an important step in providing legal guidance for disputes related to cryptocurrency assets during the bankruptcy of a cryptocurrency financial institution.
How is BlockFi focusing on repaying creditors?
Resolving legal disputes allows BlockFi to focus on managing and repaying debts to customers according to the approved bankruptcy plan.
By April 2025, approximately 90% of customers in the U.S. had received distributions from the bankruptcy fund, while the international customer payment rate was only about 43%. BlockFi set a deadline of May 15, 2025, for remaining creditors to finalize their claims. The company is committed to making efforts to repay all outstanding debts.
“This is BlockFi's special effort to ensure the rights of customers and creditors, despite facing numerous legal and market challenges.”
Excerpt from BlockFi's leadership statement, 2025
This strategy helps reinforce credibility and trust within the cryptocurrency investment community regarding how to handle financial responsibilities during bankruptcy.
How has BlockFi resolved debts with FTX?
During the bankruptcy process, BlockFi completed a $875 million settlement with stakeholders related to FTX and Alameda Research, announced in March 2023.
This agreement helps BlockFi resolve complex disputes related to assets and obligations in blockchain and the cryptocurrency market, creating a clear legal environment for debt repayment.
These advancements are seen as significant milestones, helping BlockFi gradually fulfill its responsibilities to creditors amid a highly volatile cryptocurrency market and increasingly complex legal challenges.
What is the summary of BlockFi's debt repayment and bankruptcy strategy?
Unlike many bankrupt businesses, BlockFi prioritizes developing a clear repayment plan, focusing on protecting the rights of creditors. The company aims to maximize asset recovery and distribution despite legal and market barriers.
Achievements such as resolving disputes with the Department of Justice and FTX demonstrate BlockFi's professionalism and seriousness in handling serious issues, maintaining trust in the global cryptocurrency community.
Frequently Asked Questions
What does the agreement between BlockFi and the Department of Justice mean?
The settlement agreement helps BlockFi focus on debt repayment and effectively manage cryptocurrency assets without further legal entanglements.
What percentage of the debt has BlockFi repaid to customers?
By April 2025, 90% of customers in the U.S. had received distributions, while 43% of international customers had completed their debt repayments.
What is BlockFi's connection to the FTX bankruptcy?
BlockFi has reached a $875 million settlement with FTX and Alameda to resolve debts and related asset disputes.
What is the deadline for creditors to receive payments from BlockFi?
BlockFi sets the deadline for receiving payments as May 15, 2025.
Does BlockFi plan to repay 100% of the debt to creditors?
The company aims to fully repay its outstanding debts and is actively implementing that plan.
Source: https://tintucbitcoin.com/blockfi-chi-35-trieu-usd-kien-doj/
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