BlockFi has reached a final agreement with the U.S. Department of Justice, closing a $35 million legal dispute related to blocked cryptocurrency assets.
The prolonged lawsuit between BlockFi and the Department of Justice regarding seized cryptocurrency assets has officially concluded with an agreement approved by the federal bankruptcy court in New Jersey.
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The agreement approved by Judge Michael B. Kaplan has officially dismissed the $35 million lawsuit between BlockFi and the DOJ.
This is a significant turning point in BlockFi's bankruptcy process following the collapse of FTX in 2022.
The event reflects the tightening trend of U.S. regulation and law regarding the cryptocurrency sector.
How was the agreement between BlockFi and the Department of Justice approved by Judge Michael B. Kaplan?
According to Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey, the settlement ending the $35 million lawsuit has been accepted and cannot be retried.
This means both parties will bear their own legal costs and end all related disputes. The DOJ confirmed that the seized assets are part of a criminal investigation involving two Estonian citizens, not directly related to BlockFi's bankruptcy.
This agreement clearly outlines the court's authority and limitations in handling seized assets in cases related to cryptocurrency.
Michael B. Kaplan, Judge of the U.S. Bankruptcy Court for the District of New Jersey, 04/2024
What significant stages has BlockFi's bankruptcy process undergone?
The recently approved agreement is seen as a turning point in BlockFi's bankruptcy process, starting from November 2022 after the FTX collapse that shook the cryptocurrency market.
In March 2023, BlockFi also agreed to settle a $1 billion claim with FTX and Alameda Research with a $875 million agreement. CEO Zac Prince affirmed that the company's collapse is directly linked to the actions of Sam Bankman-Fried, the founder of FTX.
As of September 2023, the court approved a plan to repay debts of up to $10 billion to over 10,000 creditors under the Chapter 11 program. In early 2024, BlockFi announced a deadline of April 28, 2024, for customers to recover cryptocurrency assets and began collaborating with Coinbase to assist with fund recovery in May 2024.
Collaboration with Coinbase helps ensure the rights of customers who still have assets stored in the system during the liquidation phase.
Zac Prince, CEO of BlockFi, 05/2024
What lessons and impacts does the BlockFi lawsuit have for the cryptocurrency sector?
The bankruptcy and prolonged litigation of BlockFi warn cryptocurrency lending companies to avoid partnering with high-risk counterparts.
At the same time, the U.S. Department of Justice has demonstrated its determination to monitor and address violations in the cryptocurrency sector, such as seizing over $225 million in USDT related to fraudulent investment schemes and dismantling 145 darknet websites belonging to the BidenCash black market.
These actions reflect a trend towards increasing control and transparency in the digital asset ecosystem, playing a crucial role in ensuring investor safety and legal compliance.
Frequently Asked Questions
How does the BlockFi lawsuit affect customers?
Customers are assisted in recovering assets through collaboration with Coinbase, enhancing the experience and ensuring rights under the court-approved bankruptcy plan.
Why did the DOJ seize BlockFi's cryptocurrency assets?
The seized assets are related to a criminal investigation involving two Estonian citizens, not directly falling under the scope of BlockFi's bankruptcy.
How much did BlockFi pay to settle the claim with FTX?
BlockFi has completed a $875 million agreement to settle a $1 billion claim from FTX and Alameda Research.
Can this legal agreement be reopened?
The lawsuit has been concluded by the court with a non-reopenable clause, ensuring finality and legal clarity.
What is the U.S. Department of Justice doing to manage risks in cryptocurrency?
The DOJ continuously seizes illegal assets, dismantles fraud networks, and increases law enforcement in the cryptocurrency market.
Source: https://tintucbitcoin.com/blockfi-va-bo-tu-phap-giai-quyet-35-trieu/
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