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Judge Encouraged to Finalize $13 Million BlockFi Settlement as Objections Withdrawn

A crucial $13.2 million settlement for BlockFi investors is moving closer to approval following the withdrawal of the last remaining objection.

Yacov Baron, the sole objector, rescinded his challenge, paving the way for approximately 89,000 affected individuals to receive compensation.

The proposed settlement pertains to U.S. holders of BlockFi interest accounts active between March 2019 and November 2022.

The plaintiffs' legal team highlighted that rapid resolution would help expedite notifications to class members and simplify BlockFi's bankruptcy proceedings.

Baron previously criticized the settlement's terms, deeming the distribution method "grossly unfair," yet chose to withdraw without elaborating.

The settlement comes after BlockFi's 2022 collapse, linked to the broader cryptocurrency market crisis triggered by the failure of TerraUSD and resulting in exposure to FTX.

Court revelations indicated that CEO Zac Prince was aware of FTX's financial troubles before BlockFi's collapse, which led to significant liquidity challenges.

As legal options for affected investors remain, some individuals opted out of the class settlement to pursue personal claims.

Legal experts emphasize the importance of taking action against cryptocurrency platforms, especially with advances in tracking misappropriated funds.

Overall, the steps taken in this case signal a pivotal moment for investors affected by BlockFi’s implosion.