A New Jersey judge finally decided to stop playing hard to get and gave preliminary approval for a $13-million settlement involving a bunch of disgruntled crypto investors and that fancy lending company, BlockFi. After months of sitting around, twiddling thumbs, and minor objections, it seems someone important said, “Okay, let’s do this.” 🎉
In a Thursday filing-because doesn’t every court document scream “drama”-Judge Claire Cecchi ordered BlockFi’s insurers (those sneaky little creatures) to cough up more than $13 million into an escrow account within 30 days. It’s part of a class-action lawsuit that’s been bubbling since 2023. This came after a February motion for preliminary approval, which was basically stuck in litigation limbo thanks to one investor’s sudden case of objections-probably obsessing over the minutiae of their “hard-earned” crypto.
The judge has scheduled a Dec. 11 hearing, where all the legal magic will either get final approval or explode into chaos. About 89,000 users who kept their interest accounts at BlockFi from March 2019 until the grand bankruptcy in November 2022 might just get some cash-because who doesn’t love the sweet taste of financial redemption? Or at least a partial refund. 💸
The lawsuit itself was born out of the great cryptocurrency meltdown-think of it as the market’s version of a Titanic prank, minus the orchestra. The collapse of Terra’s ecosystem sparked a domino effect that took FTX, Celsius, Voyager, and numerous other crypto giants down with it. Dive into that fun chaos if you want; it’s like a soap opera with more blockchain and fewer sunglasses. 🕶️
It all started with Trey Greene (not a superhero, probably), who filed allegations claiming BlockFi was peddling unregistered securities-probably some kind of digital snake oil-thanks to misstatements from then-CEO Zac Prince, COO Flori Marquez, and others playing hide-and-seek with the truth. Meanwhile, court filings suggested Prince may have ignored risk management advice while lending to Alameda Research. Seems like nobody really knew what was going on, except maybe a few lawyers and the office coffee machine.
Still in Bankruptcy Limbo
And amidst all this mess, BlockFi’s trying to play nice by returning users’ crypto holdings-probably hoping everyone forgets the recent epic collapse. In September 2023, they got court approval to pay off over 10,000 creditors-and settled with FTX and Alameda for a humble $875 million. As of April, BlockFi’s official line is, “We’re working to give everyone their fair share,” though it looks like some crypto and dollars are still playing hard to get. Someone should tell them, patience has a limit, just like patience at your local DMV.
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2025-08-22 23:08