BlockFi’s $13.2 Million Settlement Moves Forward After Final Objection Withdrawn

With the last objection removed, attorneys state the settlement can proceed, enabling compensation distribution for nearly 89,000 U.S. BlockFi investors affected by the lender’s 2022 collapse.

Summary

BlockFi’s $13.2 million class action settlement is nearing approval after the last objector, Yacov Baron, withdrew his opposition. The agreement covers around 89,000 U.S. holders of BlockFi Interest Accounts between 2019 and 2022. BlockFi collapsed following its $680 million exposure to FTX, which went bankrupt in November 2022. Attorneys confirmed that approval will allow notices to be issued to class members. BlockFi also announced interim crypto distributions to creditors via Coinbase, though non-U.S. clients are excluded due to regulations. The resolution represents a key step in finalizing BlockFi’s bankruptcy process.

Terms & Concepts
  • BlockFi Interest Accounts (BIA): Investment accounts offered by BlockFi that allowed users to earn interest on deposited cryptocurrencies.
  • Class Action Settlement: A legal resolution in which a group of plaintiffs collectively agree to compensation terms from a defendant, avoiding a trial.
  • FTX Exposure: Refers to financial losses linked to BlockFi’s $680 million involvement with the collapsed cryptocurrency exchange FTX.