BlockFi Settlement Nears Final Approval After Objection Withdrawn

A key development has occurred in the $13.2 million class action settlement for BlockFi investors. According to a recent report, the last person objecting to the settlement, Yacov Baron, has withdrawn his challenge. Court to Proceed With Final Approval Process Attorneys sent a letter to U.S. District Judge Claire Cecchi saying that Baron has withdrawn his motion to intervene and his objections to the settlement. It is worth noting that the settlement will provide compensation to 89,000 BlockFi Interest Account (BIA) holders who were unable to access their funds after the lending platform froze withdrawals. Notably, Baron had criticized the proposed distribution plan as “grossly unfair.” He particularly objected to sharing settlement funds equally among all class members, regardless of their individual losses. However, he has now withdrawn his objection without explanation. This allows the court to proceed with the final approval process. While over 10,000 BlockFi users chose not to participate in the bankruptcy process, the remaining users will receive a $13.2 million settlement fund. Legal experts say this settlement is an opportunity for recovery in one of the biggest bankruptcies in the cryptocurrency world. BlockFi Shutdown and Client Withdrawals In May 2024, BlockFi announced it would shut down its web platform while partnering with Coinbase to facilitate customer withdrawals. Eligible users, including those with Interst Accounts, retail loans, and private client accounts, were encouraged to use Coinbase to access their remaining funds. BlockFi, which declared bankruptcy in November 2022 following the collapse of the FTX exchange, set a final withdrawal deadline of April 2024 for customers to reclaim their assets. The firm’s collapse reflected the wider instability within the crypto lending sector during the crypto winter, which saw liquidity drying up across the industry. BlockFi Bankruptcy Proceedings Continue Recall that last month, the administrator overseeing BlockFi’s bankruptcy wind-down settled with the US Department of Justice (DOJ) . The settlement dismissed a $35 million crypto asset transfer lawsuit, marking a resolution to a contentious chapter in the crypto lender’s bankruptcy proceedings. Notably, this settlement followed BlockFi’s prior resolution with FTX and Alameda Research estates. During court proceedings, BlockFi CEO Zac Prince testified that the actions of FTX founder Sam Bankman-Fried directly led to his company’s bankruptcy. As previously reported, the bankruptcy court approved BlockFi’s chapter 11 plan, which aims to repay over 10,000 creditors. The post BlockFi Settlement Nears Final Approval After Objection Withdrawn appeared first on TheCoinrise.com .