Bankrupt crypto lender BlockFi has dropped its yearlong lawsuit against the US government, closing a dispute over digital assets seized in connection with a criminal case.
In a court filing dated July 11, Plan Administrator Mohsin Meghji and the Department of Justice agreed to dismiss the case with prejudice, meaning it cannot be refiled.
The suit, filed in May 2023, accused the DOJ of violating bankruptcy protections by attempting to transfer control of crypto assets that may have belonged to the BlockFi estate.
The bankruptcy court rejected the DOJ’s motions to dismiss or move the case to district court, affirming its jurisdiction to determine whether the assets were estate property.
The dismissal clears one of the last hurdles in BlockFi’s wind-down.
After emerging from bankruptcy in October 2023, BlockFi began crypto distributions the following July, with US customers receiving funds first and non-US clients facing delays due to cross-border legal hurdles.