After Last Objection Dropped, BlockFi’s $13.2M Investor Pact Clears Final Hurdle

A $13.2 million class-action settlement with cryptocurrency lender BlockFi has taken a major step forward after the last remaining objector, Yacov Baron, withdrew his opposition. The settlement, which had faced delays due to objections, now appears poised for final approval by a U.S. federal court. Judge Claire Cecchi has scheduled a December 11 hearing to determine the final approval of the agreement, which will provide compensation to approximately 89,000 U.S. investors who held interest accounts with BlockFi between March 2019 and its bankruptcy in November 2022 [4].

The settlement stems from a class-action lawsuit filed in 2023, alleging that BlockFi sold unregistered securities through misleading statements and omissions by its leadership, including then-CEO Zac Prince and COO Flori Marquez. The company’s collapse in 2022 was attributed to a $680 million exposure to FTX, which filed for bankruptcy just days before BlockFi. The broader 2022 crypto market downturn, triggered by the Terra ecosystem collapse, led to multiple high-profile firm failures, including Celsius Network and Voyager Digital [1].

Under the terms of the settlement, BlockFi’s insurers have been ordered to deposit more than $13 million into an escrow account within 30 days [4]. This fund will then be distributed to eligible investors. The settlement marks a significant relief for the affected investors, offering them a compensation channel following the loss of access to their funds after the company’s failure. The settlement also builds upon an $875 million agreement BlockFi previously reached with FTX and Alameda Research to resolve claims related to its liquidity crisis [4].

BlockFi is currently in bankruptcy proceedings and has been working to return crypto assets to users. In September 2023, a bankruptcy court approved the company’s Chapter 11 plan to repay over 10,000 creditors. Despite these efforts, the company noted in an April 2025 X post that a significant amount of USD and crypto remains unclaimed by customers [4].

The approval of the $13.2 million settlement aligns with broader regulatory developments in the crypto sector, including the CFTC's ongoing "crypto sprint" initiative aimed at establishing federal oversight frameworks for digital assets. The CFTC is working to address gaps in market structure, custody, stablecoin regulation, and anti-money laundering standards, part of a four-phase rulemaking process that began in August 2025 [3].

The settlement’s approval also highlights the increasing focus on investor protections and regulatory clarity in the digital asset space, particularly in the wake of repeated market failures. With the final objection withdrawn, the settlement is expected to proceed smoothly through the approval process, providing a critical resolution for the affected investors.

Source: [1] BlockFi $13.2 Million Class Action Settlement Nears Approval (https://www.bitget.com/news/detail/12560604925082) [2] BlockFi Judge Urged To OK $13M Deal As Objector ... (https://www.law360.com/articles/2379552/blockfi-judge-urged-to-ok-13m-deal-as-objector-withdraws) [3] CFTC Opens Next Phase of Crypto Sprint, Seeks Public ... (https://decrypt.co/336357/cftc-opens-next-phase-crypto-sprint-seeks-public-input-broader-rules) [4] US Court Signs Off On $13M BlockFi Settlement After ... (https://cointelegraph.com/news/court-blockfi-settlement-investor-withdraws-objection)