Recent developments in BlockFi's legal proceedings have led to the withdrawal of the last objection, enabling the court to move toward final approval of the investor settlement.
Withdrawal of Objections and Next Steps
According to the latest report, participant Yacov Baron, who previously objected to the BlockFi settlement, has withdrawn his objection. Attorneys sent a letter to U.S. District Judge Claire Cecchi stating that Baron has withdrawn his motion to intervene and his objections to the settlement. This allows the court to proceed to final approval of the settlement, which will provide compensation to 89,000 BlockFi Interest Account holders who were unable to access their funds after withdrawals were frozen.
BlockFi Shutdown and Customer 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 interest accounts, retail loans, and private client accounts, were encouraged to use Coinbase to access their remaining funds. Following BlockFi's bankruptcy declaration in November 2022, customers were given a final withdrawal deadline of April 2024.
Continued Bankruptcy Proceedings of BlockFi
Recently, the administrator overseeing BlockFi's wind-down settled with the U.S. Department of Justice, resolving a contentious $35 million crypto asset transfer lawsuit. This settlement concludes a difficult chapter in the company's bankruptcy proceedings. CEO Zac Prince testified during court proceedings that the actions of FTX founder Sam Bankman-Fried directly led to BlockFi's bankruptcy.
The withdrawal of the last objection allows for the completion of the approval process for the BlockFi settlement, marking an important step in resolving one of the largest bankruptcies in the cryptocurrency world.
