U.S. Bankruptcy Judge Michael Kaplan has approved a settlement between BlockFi and the Department of Justice, marking a significant step toward restoring funds to clients.
Details of the Settlement
Under the settlement, the DOJ's lawsuit against BlockFi, stemming from efforts to seize funds, has been dismissed. This means the case cannot be refiled and both parties will bear their own legal costs.
Challenges in Asset Recovery
During this time, BlockFi has faced challenges in returning assets to clients following the company's collapse in late 2022. The settlement now removes a key legal hurdle in the wind-down process and allows for continued asset recovery efforts.
What's Next?
BlockFi is continuing to work with Coinbase to facilitate withdrawals for clients who were left uncertain about their status after the collapse. Clients have until April 28, 2024, to reclaim their assets, including those connected to loans and private portfolios.
The approval of the settlement between BlockFi and the DOJ is a major step toward the recovery of clients' assets, which have remained in limbo amid the company's financial troubles.
