BlockFi and DOJ Drop $35M Crypto Lawsuit Like It's Hot

The crypto world just got a bit less dramatic. BlockFi’s bankruptcy admin and the DOJ have called it quits on a $35M lawsuit over some shady crypto transfers. Judge Michael B. Kaplan gave it the official nod last Friday.

This legal tiff kicked off in May 2023, with the DOJ trying to snatch over $35M in crypto from BlockFi, claiming it was linked to some Estonian dudes in a fraud case. BlockFi was like, 'Nah, not our problem,' and here we are.

The deal? Dismissed with prejudice, meaning this saga can’t haunt us again. Both sides are paying their own lawyers, because apparently, that’s how adults handle their messes.

Remember when BlockFi went belly up after FTX’s epic fail? Yeah, that was a vibe. They’ve been trying to clean up ever since, even teaming up with Coinbase to help users get their crypto out before the April 2024 deadline.

In a plot twist no one saw coming, BlockFi also settled with FTX and Alameda for a cool $875M. CEO Zac Prince pointed fingers at SBF, saying his shenanigans were the final nail in BlockFi’s coffin. Shocking, right?

With over $10B owed to creditors, including a hefty chunk to Three Arrows Capital, BlockFi’s bankruptcy saga is the gift that keeps on giving. Stay tuned for the next episode of 'As the Crypto World Turns.'