BlockBeats reported on April 17th that the US Department of Justice (DOJ) stated in a memorandum that it will re-examine a practice of compensating investors at a price lower than their current market value in cases involving fraud and theft when digital assets are confiscated. The memo mentioned that the Department of Justice is paying attention to some well-known bankruptcy cases in 2022, including FTX, Voyager Digital, Celsius Network, Genesis Global, BlockFi, and Gemini Trust. Although not all of these bankruptcy cases involve criminal charges, the Department of Justice points out that many of them resulted in investors losing digital assets due to "fraud and theft". In addition, the Ministry of Justice also pointed out that the value of these digital assets has seen a significant increase in the following years. However, the court's approach was not driven by a desire to cause pain to creditors. The problem is that the current US bankruptcy regulations stipulate that confiscated assets should be returned to the victim at the time of fraud in US dollars. Although this may seem unfair, experts say there are important reasons behind this rule, and changing it could be very difficult.
