BlockFi's proposed $13.2 million class action settlement for investors edged closer to approval after the last objector, Yacov Baron, withdrew his objections. This settlement affects approximately 89,000 holders of BlockFi Interest Accounts who lost access to their funds following the platform's collapse in 2022 due to a $680 million exposure to FTX. The lead plaintiffs emphasized the need for a quick resolution to avoid complications in BlockFi's bankruptcy proceedings. The settlement applies to all U.S. holders of BlockFi interest accounts from March 2019 to November 2022. While 10,000 investors opted out of the bankruptcy protections, the deal mandates equal fund distribution among class members. Legal experts indicate that individuals derailing the settlement can still pursue separate legal claims. The downfall of BlockFi was part of a larger crisis triggered by the collapse of Do Kwon's TerraUSD stablecoin, which fundamentally impacted the crypto lending sector.

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