A New Jersey judge has preliminarily approved a $13-million settlement between investors and BlockFi after a class-action lawsuit. Insurers must pay over $13 million to an escrow account, with a final hearing set for Dec. 11 to discuss objections. Around 89,000 users are eligible for distributions from March 2019 to November 2022.

The lawsuit against BlockFi came after the cryptocurrency market downturn, linked to the Terra ecosystem collapse. Companies like FTX, Celsius Network, and Voyager Digital also faced bankruptcy. Initial complaints alleged BlockFi sold unregistered securities with misrepresentations, including lending assets to Alameda Research.

BlockFi, still in bankruptcy proceedings, is returning users’ crypto holdings and reached an $875-million settlement with FTX and Alameda Research. The company aims to make final distributions to creditors and customers, with significant amounts of USD and crypto still unclaimed. Privacy concerns in US crypto policy are also being examined post-Roman Storm’s conviction.

Read more at Cointelegraph: US Court Signs Off On $13M BlockFi Settlement After Objection Withdrawn