Here’s what happened in crypto today

Today in crypto, BlockFi’s bankruptcy administrator and the DOJ have settled a $35 million crypto asset transfer lawsuit, US-based spot Bitcoin ETFs posted another inflow day above $1 billion on Friday. Meanwhile, Binance reportedly helped build the stablecoin code for World Liberty Financial, a crypto firm linked to US President Donald Trump.

BlockFi bankruptcy administrator and DOJ settle $35M lawsuit

The administrator overseeing BlockFi’s bankruptcy wind-down and the US Department of Justice (DOJ) have reached a settlement to dismiss a $35 million crypto asset transfer lawsuit involving the crypto lender.

The agreement was approved by Judge Michael B. Kaplan of the US Bankruptcy Court for the District of New Jersey on Friday, according to court filings.

The lawsuit, filed in May 2023, sought to transfer over $35 million in crypto assets from BlockFi to the US government. The DOJ said it had warrants to seize the funds from the BlockFi accounts of two Estonian citizens in a criminal fraud case unrelated to BlockFi’s bankruptcy.

At the time, the DOJ argued that the US Bankruptcy Court for the District of New Jersey did not have the jurisdiction to prevent BlockFi from transferring the assets. The dispute arose during BlockFi's bankruptcy proceedings.

US Bitcoin ETFs record first back-to-back $1B inflows

US-based spot Bitcoin ETFs recorded over $1 billion in inflows for the second consecutive day on Friday, marking the first time since their January 2024 launch that they’ve seen two back-to-back days with ten-digit inflows.

On Friday, the 11 spot Bitcoin ETF products recorded total inflows of $1.03 billion, following $1.17 billion in inflows the day before, according to Farside data.

NovaDius Wealth Management president Nate Geraci said in an X post that since the January 2024 launch, there have been only seven inflow days exceeding $1 billion, two of which occurred in the past two days. Before that, the last was on Jan. 17, with $1.07 billion.

Binance helped create World Liberty Financial stablecoin — Report

Cryptocurrency exchange Binance reportedly helped create the code behind the stablecoin issued by World Liberty Financial (WLF), one of the crypto businesses tied to US President Donald Trump.

According to a Friday Bloomberg report citing three people familiar with the matter, Binance helped create, promote, and played a role in the largest transaction of WLF’s USD1 stablecoin. The crypto business, backed by Trump and his three sons, launched USD1 on March 4. 

An Abu Dhabi-based investment firm, MGX, announced a $2-billion investment in Binance on March 12 using a then-unnamed stablecoin. Eric Trump, one of WLF’s co-founders, said in May that the company would be using USD1 to settle the investment.

According to Bloomberg, 90% of all the USD1 coins used in the transaction remained in Binance’s wallets as of Friday, potentially generating tens of millions of dollars in interest for Trump and his family.

Cointelegraph reached out to a Binance spokesperson and World Liberty Financial but had not received responses at the time of publication.