The U.S. court is preparing to approve a 13.2 million USD compensation agreement for account holders affected by the BlockFi bankruptcy.

The BlockFi class action lawsuit has recorded another new development as the last objector withdrew their objection, paving the way for the compensation agreement for 89,000 investors with frozen assets to be approved soon.

MAIN CONTENT

  • Yacov Baron, the last objector in the BlockFi lawsuit, has withdrawn their intervention and objection to the compensation agreement.

  • The agreement worth 13.2 million USD is for about 89,000 savings accounts that were frozen after the BlockFi collapse.

  • BlockFi filed for bankruptcy after FTX, amid the liquidity crisis during the cryptocurrency winter of 2022.

Who was the last to withdraw their objection in the BlockFi class action lawsuit and what was the outcome?

Yacov Baron, the last objector in the BlockFi class action lawsuit, has withdrawn their intervention and objection to the compensation agreement. This helps clear the path for the court to review and approve the compensation agreement more quickly.

This move is very important because just one remaining objection can delay or complicate the approval process for the agreement. Baron's withdrawal contributes to expediting the process to ensure timely compensation for the affected.

What is the value and scope of the compensation agreement for BlockFi account holders?

The 13.2 million USD compensation agreement will pay around 89,000 savings account holders whose funds were locked after BlockFi's collapse. This is an important compensation aimed at protecting investor rights in this class action lawsuit.

The volume of this account reflects losses from the BlockFi bankruptcy event. The compensation will help mitigate risks and financial harm to individuals holding funds on the platform before their assets were frozen.

Why did BlockFi have to file for bankruptcy, and what is the connection with FTX?

BlockFi officially declared bankruptcy after the cryptocurrency market fell into a crisis phase in 2022, also known as the cryptocurrency winter. The main cause was the collapse of the stablecoin TerraUSD and the widespread impact from the FTX lawsuit, related to the exposure of 680 million USD.

BlockFi filed for bankruptcy just one day after FTX went through a similar process. This shows the widespread negative impact from financial events in the cryptocurrency ecosystem, causing severe liquidity crises for many entities.

"The steps towards approving the compensation agreement are an important signal for investors, demonstrating transparency and accountability in addressing the consequences of the BlockFi bankruptcy."
– U.S. court spokesperson, August 2023

Frequently Asked Questions

Who is affected by the BlockFi lawsuit?

About 89,000 savings account holders with frozen funds after the BlockFi bankruptcy event are all eligible for compensation under the latest agreement.

How much is the BlockFi compensation agreement worth?

The total value of the agreement is 13.2 million USD to compensate account holders directly affected.

What caused BlockFi to go bankrupt?

The liquidity crisis caused by the collapse of TerraUSD and the connection with a loss of over 680 million USD to FTX is the main reason BlockFi filed for bankruptcy.

When is the expected approval time for the compensation agreement?

The approval is expected to happen soon after the last objector withdraws their objection, with no further legal obstacles.

What is the connection between BlockFi and FTX in this bankruptcy case?

BlockFi was heavily impacted by the FTX bankruptcy due to a financial exposure of 680 million USD with this exchange.

Source: https://tintucbitcoin.com/doi-thu-blockfi-rut-lui-thoa-thuan-gan-dat/

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