BlockFi Settlement Agreement Faces Approval, Last Opponent Withdraws Objection

According to reports from Decrypt, there has been a recent development in the BlockFi class action lawsuit in a U.S. court, with the last opponent Yacov Baron withdrawing his motion to intervene and objection to the compensation agreement. This agreement involves approximately 89,000 interest account holders whose funds were frozen after BlockFi's bankruptcy, with a compensation amount of $13.2 million, and is expected to be approved soon. BlockFi's bankruptcy began during the crypto winter of 2022, triggered by the collapse of Do Kwon's TerraUSD stablecoin, which caused a chain reaction leading to a severe liquidity crisis due to a $680 million exposure to FTX. One day after FTX filed for bankruptcy, BlockFi immediately filed for bankruptcy protection.