A New Jersey judge has granted preliminary approval for a $13 million settlement in a class-action lawsuit involving BlockFi, a cryptocurrency lending company. The approval follows the withdrawal of an objection by an investor, which had previously delayed the process. Judge Claire Cecchi ordered that BlockFi's insurers pay the settlement amount into an escrow account within 30 days. This settlement will benefit approximately 89,000 users who held interest accounts with BlockFi from March 2019 until its bankruptcy in November 2022. The initial lawsuit claimed that BlockFi misrepresented its securities offerings under the leadership of its then-CEO Zac Prince. In September 2023, BlockFi's Chapter 11 plan was approved to repay more than 10,000 creditors, with efforts ongoing to return users' cryptocurrency holdings. The final approval hearing for the settlement is scheduled for December 11, 2025.

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