BlockFi's bankruptcy administrator has reached a settlement with the U.S. Department of Justice, resulting in the dismissal of a $35 million lawsuit. The agreement, approved by New Jersey Bankruptcy Court Judge Michael B. Kaplan, resolves a case that began in May 2023 when the DOJ sought to seize funds from BlockFi accounts linked to a criminal fraud investigation involving two Estonian citizens. Under the settlement terms, the lawsuit is dismissed with no further litigation permitted, and each party will cover its own legal costs. BlockFi, which declared bankruptcy following the FTX collapse in November 2022, owes $10 billion to approximately 100,000 creditors and has set an April 28, 2024 deadline for customers to withdraw remaining crypto assets.