US court signs off on $13M BlockFi settlement after objection withdrawn

After a BlockFi investor withdrew an objection filed in February, a judge appeared to clear the way for the next step in a settlement of a class-action lawsuit.

A New Jersey judge has given preliminary approval for a $13-million settlement between a group of investors and cryptocurrency lending company BlockFi after months of delays.

In a Thursday filing in the US District Court for the District of New Jersey, Judge Claire Cecchi ordered BlockFi’s insurers to pay more than $13 million to an escrow account within 30 days as part of a class-action lawsuit filed in 2023. The order followed a February motion for preliminary approval, which was held up in part due to an objection from one investor.

The judge scheduled a Dec. 11 hearing to determine final approval of the settlement plan and discuss any objections from parties to the lawsuit. About 89,000 users who held interest accounts at the company from March 2019 until its bankruptcy in November 2022 were eligible for distributions under the settlement.

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