Bloomberg Law
May 23, 2023, 6:44 PM

BlockFi Creditors Push To Stop DOJ $40 Million Crypto Seizure

James Nani
James Nani
Reporter

BlockFi Inc.'s unsecured creditors have asked a bankruptcy court to stop the federal government from seizing nearly $40 million in virtual currency as part of an unrelated criminal case.

An agreement allowing the US Department of Justice to seize funds from the accounts of two Estonian citizens facing fraud charges will impair creditor recoveries, an unsecured creditor committee told the New Jersey bankruptcy court in a complaint filed Monday.

The pair were arrested in October after being hit with an 18-count indictment accusing them of running a $575 million cryptocurrency fraud and money laundering conspiracy. BlockFi has agreed to comply ...

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