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Settlement

US Judge Clears $13M BlockFi Settlement Amid Investor Claims

by admin August 23, 2025

A US court has moved swiftly to clear a $13-million settlement in the BlockFi investor lawsuit, signaling long-awaited relief. In a Thursday filing, Judge Claire Cecchi of New Jersey ordered BlockFi’s insurers to deposit the funds into escrow within 30 days. The decision followed months of delay caused by objections from an investor. A final approval hearing will now take place on December 11.

This decision addresses claims made by over 89,000 BlockFi customers who had interest-bearing accounts from March 2019 to November 2022. The corporation was charged in the 2023 class-action lawsuit of marketing unregistered securities and deceiving investors by having senior officials make false representations on multiple occasions.

Investor Claims and Bankruptcy Fallout

The complaint, which was led by Trey Greene, says the CEO Zac Prince and COO Flori Marquez ignored the warnings from their risk team. They are alleged to have made loans to Alameda Research, which contributed to BlockFi’s collapse during the market crash of 2022.

As a result, the company filed for bankruptcy after the Terra collapse set off a chain reaction of failures at Celsius, Voyager, and FTX.

Besides the settlement, BlockFi has been attempting to repay customers under its Chapter 11 plan. Last year, the company secured an $875-million agreement with FTX and Alameda to resolve disputes.

Moreover, it has promised to complete final distributions to creditors, although significant amounts remain unclaimed. In April, the BlockFi Estate confirmed on X: “There are still significant amounts of USD and crypto that have not been claimed by customers.”

Wider Industry Crackdown

The BlockFi case comes as regulators and law enforcement tighten oversight of crypto-related misconduct. Interpol revealed this week that Operation Serengeti 2.0 dismantled 25 illegal crypto mines in Angola. The raid seized $37 million in equipment and shut down 45 illicit power stations.

Additionally, authorities have apprehended over 1,200 cybercriminals who were targeting around 88,000 victims across the globe.

The recent BlockFi settlement shows that courts demand accountability, while regulators ramp up their initiatives to address the dangers associated with risky crypto practices.

Also Read: VanEck Files First JitoSOL Liquid Staking ETF in U.S.

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August 23, 2025 0 comments

NFT Gaming

BlockFi Judge Urged to Approve $13 Million Settlement as Last Objector Withdraws

by admin August 22, 2025

In brief

Lead plaintiffs notified the court that Yacov Baron withdrew his intervention motion and settlement objections, removing the final barrier to approval.
The settlement covers roughly 89,000 BlockFi Interest Account holders who lost access to funds when the platform collapsed in November 2022.
BlockFi’s bankruptcy was triggered by its $680 million exposure to FTX, which filed for bankruptcy one day after BlockFi froze customer withdrawals.

A $13.2 million class action settlement for BlockFi investors moved closer to approval after the sole remaining objector abandoned his challenge. That could remove the final hurdle for compensation to thousands who lost access to funds when the crypto lender imploded in 2022.

Attorneys for lead plaintiffs filed a letter on Wednesday with U.S. District Judge Claire Cecchi, confirming that Yacov Baron had withdrawn both his motion to intervene and his objections to the proposed deal.

“Rapid resolution of the Preliminary Approval Motion will allow Plaintiffs to commence issuing notice to class members and will reduce the potential for complications to arise in connection with the closing of the bankruptcy of BlockFi, Inc.,” the letter said.

The proposed settlement covers all U.S. holders of BlockFi interest accounts between March 2019 and November 2022.

With Baron’s opposition removed, roughly 89,000 holders of BlockFi Interest-bearing Accounts could soon receive compensation for investments that were frozen when the New Jersey-based lender imploded.

“Those who have opted out of class settlements can pursue an individual claim and seek compensation for specific harm, rather than being bound by the terms of the class settlement,” Navodaya Singh Rajpurohit, legal partner at Coinque Consulting, told Decrypt.

“Usually when there is a criminal charge against the officer of a company under bankruptcy, it is treated as a separate case,” he said, citing how Celsius founder Alex Mashinsky was sentenced to 12 years in prison for fraud charges despite his company’s bankruptcy.

BlockFi’s downfall in 2022 was part of the wider chain reaction that began with the implosion of Do Kwon’s TerraUSD stablecoin in May that year, wiping out billions and triggering a lender crisis.

By November, the contagion had spread to Sam Bankman-Fried’s FTX empire, whose collapse exposed BlockFi’s $680 million exposure to FTX and its sister company, Alameda Research.

Just one day after FTX filed for bankruptcy, BlockFi followed suit, citing a severe liquidity crunch.

Court documents later revealed CEO Zac Prince had known about FTX’s questionable balance sheet as early as August 2021, but continued doing business with the trading firm.

Kwon, who pleaded guilty to conspiracy and wire fraud charges in August, faces up to 12 years in prison, and has agreed to pay $19 million as part of the plea deal.

While over 10,000 investors opted out of bankruptcy protections, the deal would distribute funds equally among all class members, a provision Baron had criticized as “grossly unfair” before withdrawing his objections without explanation.

“Victims who have lost money through investment scams or crypto platforms should consider taking legal action to seek recovery of their funds,” Andy Lau, Partner at David Cameron Law Office, told Decrypt.

“With advancements in blockchain tracing technology, misappropriated BlockFi funds can now be traced and identified, significantly enhancing the likelihood of recovery for these specific cases,” he said.

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August 22, 2025 0 comments

GameFi Guides

Ripple Says Negotiated Settlement Levels the Playing Field

by admin June 17, 2025

Enterprise blockchain company Ripple has filed a supplemental letter in support of its motion for an indicative ruling.

Ripple argues that approving the recently negotiated settlement would place the company “on more comparable footing” compared to other industry participants.

“…the settlement would also place Ripple on more comparable footing with other industry participants whose cases were dismissed much earlier in their lifecycle as a matter of SEC discretion,” the letter said.

The SEC previously dismissed cases against such major players as Coinbase and Kraken.

When it comes to Ripple, the SEC agreed to slash the company’s penalty to $50 million while also lifting the injunction targeting institutional sales in the US.

Shaquille O’Neal to Pay $1.8M in Settlement Over FTX Promotion Lawsuit

by admin June 15, 2025

NBA legend Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit brought by investors in the collapsed crypto exchange FTX, according to several media reports this week.

The investors allege that O’Neal misled them by appearing in ads for the collapsed cryptocurrency exchange. The payout is about $1 million more than the $750,000 O’Neal was reportedly paid for his role in an FTX commercial.

The former basketball star was among several celebrities, including Tom Brady and Larry David, who were sued for promoting the exchange before its collapse in late 2022.

O’Neal has maintained that he was simply a paid actor in the ad, saying after the exchange’s collapse he was “just a paid spokesperson for a commercial.”

If the settlement is approved, O’Neal will be released from all future claims tied to the lawsuit. He will not be allowed to seek reimbursement from the FTX bankruptcy estate and will not have to admit any wrongdoing, according to the CNBC report.

The lawsuit was filed on behalf of FTX users who deposited funds between May 2019 and late 2022, before the company’s dramatic failure.

FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison for defrauding customers and investors. His sentence could be cut by over four years.

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June 15, 2025 0 comments

GameFi Guides

SEC and Ripple File for Settlement Agreement

by admin June 12, 2025

The proposed $125M resolution
Ripple-SEC joint filing suggests regulatory change

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new, important step, according to a post by Fox Business journalist Eleanor Terrett.

The two parties have requested that the Manhattan District Court approve an injunction and free a $125 million civil penalty that has been in escrow. The step is an indication that the long-standing conflict might be coming to an end.

The proposed $125M resolution

In the proposal, it is also planned that $50 million would be paid to the SEC, and the rest, $75 million, would be returned to Ripple. This is one motion brought before Judge Analisa Torres of the Southern District of New York in a move to have the case settled and prevent the appeals that are pending and any further litigation.

The document, labeled as Case 1:20-cv-10832-AT-SN, was filed through the electronic filing system of the court.

Source: Eleanor Terrett

Before the resolution of this Ripple case, the XRP token, which is associated with Ripple, experienced a massive decline in price. The value of XRP will likely increase with a settlement. The investors that have been hesitant to join the market may now be more comfortable, with a brighter future ahead of them.

The possibility of cash flow back to Ripple also implies that the company would be able to reinvest in their business, which will further enhance innovations and developments in the blockchain sector. This would also bring new opportunities to the investors, as a renewed Ripple would further grow its payment solutions internationally, resulting in higher demand for XRP.

Ripple-SEC joint filing suggests regulatory change

Although the court has not granted this motion, the fact that the two sides filed a joint request is already an indication of good cooperation between Ripple and the SEC. Should it succeed, it may become a precedent on how cryptocurrency-based companies can deal with regulatory issues and provide a blueprint to other companies in the field.

Ripple SEC Lawsuit Settlement on June 16: Fact Check

by admin June 6, 2025

Rumors have recently gone viral on social media, particularly on X (formerly Twitter), claiming that the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) will end on June 16. Social media posts consider June 16 as the final settlement date for the XRP lawsuit.

But, there’s no official confirmation of a settlement. Those speculating on June 16 rely on the upcoming deadline in the case, not when the court will issue the verdict. Pro-XRP attorney Fred Rispoli, clarified the significance of the June 16 date.

It marks a deadline for a status update to the U.S. Court of Appeals for the Second Circuit. This stems from a May 15 decision by Judge Analisa Torres, who rejected a joint request from Ripple and the SEC that sought to approve a settlement deal. She ruled the filing was made under the wrong legal rule and warned she would have denied it regardless.

Importantly, since that denial, neither party has refiled a corrected motion, prompting concern and speculation. If no new filing is made by June 16, the appeals court may proceed based on the judge’s original rejection — potentially restarting the appeal process. Meanwhile the motion is valid and is brought within the deadline, it can lead to the proceedings being suspended for 60 more days.

Currently there are no papers or statements to show that the case has been settled. Any statements about the ending of the case are at most vague and only theoretical.

Upon fact checking, on June 16 the expected settlement of the Ripple SEC lawsuit is still not certain. The claims on social media about a secret agreement between the Ripple, SEC, and Judge Torres also don’t seem to be true, since there is no evidence to support them.

To summarize, the June 16 date only serves as an agreed timeframe for the next step and doesn’t decide the outcome. The existence of a secret settlement deal is yet to be confirmed

Also Read : XRP Lawsuit: US SEC Files Opposition in Ripple Case

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June 6, 2025 0 comments

Crypto Trends

Is June 13 the Date for Final Settlement?

by admin June 4, 2025

The Real Remi Relief, a popular XRP advocate, has caused a stir on the social media platforms with a bold claim relating to Ripple’s ongoing legal struggle against the United States Securities and Exchange Commission. In a recent post on X, she said that Ripple, the SEC, and Judge Analisa Torres have “reached a deal” in the long-running lawsuit.

Remi added that a public announcement could be made as soon as Friday, June 13, 2025. However, she also noted, “Even though it’s not 100% confirmed, I’m personally going to prepare as if it is.” She also commented that XRP’s price could increase significantly once it crosses its all-time high of $3.84.

Is Ripple-SEC Settlement on June 13, Source: X

However, at the time of writing, XRP is trading around $2.25, up about 4% in the last 24 hours. Before this, Remi hinted at some “potential” XRP news and urged her followers to buy XRP—especially if the price is around $2. She confidently claimed, “A $5 investment will be worth thousands.”

Followers of Remi are taking the news seriously as she owns the track record of getting things right, like predicting the DOGE ETF and earlier court rulings. Her latest statement has fueled speculation that the Ripple-SEC dispute is nearing a resolution favorable to the blockchain firm.

However, not everyone is convinced. Marc Fagel, former SEC Commissioner, responded bluntly, calling the claim “false.” Also, there has been no official confirmation on the claims of settlement on June 13.

Ripple has been fighting the SEC since 2020 over whether XRP is a security. If this rumored deal is true, it might mark the end of the lawsuit, and Ripple may have come out ahead. That could be huge for the entire crypto world, especially if it brings regulatory clarity to digital assets in the U.S.

It hasn’t all been smooth sailing, though. On May 15, Judge Torres rejected a joint request from Ripple and the SEC to reduce the firm’s fine and dissolve an old injunction. She said the request was “procedurally improper.”

Also Read: Ripple XRP vs SEC Update: Ripple Replies to Commissioner Peirce

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June 4, 2025 0 comments

NFT Gaming

Trading Platform eToro Adds 12 Tokens to US Platform Following SEC Settlement and IPO Push

by admin May 28, 2025

In brief

eToro has added 12 crypto assets for U.S. traders after an SEC-driven scale-back last year
The new offerings follow an IPO roadshow and renewed U.S. growth ambitions
The firm settled SEC charges in 2024 with a $1.5 million penalty and retained only 3 assets for U.S. customers to trade

Online trading platform eToro announced on Wednesday that it has added 12 cryptocurrencies to its U.S. platform, expanding its digital asset offerings in the country after sharply scaling back its presence last year due to regulatory constraints.

The new tokens available to U.S. users include Cardano, Dogecoin, XRP, and Shiba Inu, among others, bringing the total number of listed assets from three to 15.

These tokens join Bitcoin, Ethereum, and Bitcoin Cash, the only crypto assets the firm offered after a 2024 settlement with the U.S. Securities and Exchange Commission.

“Of course, we did lots of diligence and research, and we thought with these 12, the time is now, especially in the wake of our IPO a few weeks ago,” Andrew McCormick, Head of eToro U.S, told Decrypt. “And so [there’s a] lot of excitement, lots of opportunity, and we think it’s going to be [a] real win for customers.”

eToro claims to serve over 40 million registered users across 75 countries. While its crypto operations were temporarily curtailed in the U.S., it remains one of the largest multi-asset trading platforms globally.

Cryptocurrency accounted for 37% of its trading commissions in the first quarter of 2025.

The expansion comes amid a friendlier regulatory climate under the Trump administration and marks a renewed push by the Israel-based platform to expand its U.S. presence, including the launch of an IPO roadshow earlier this month. It is targeting a valuation of up to $4 billion.

In September 2024, the SEC settled with eToro in a case that accused the platform of operating as an unregistered broker-dealer and clearing agency for offering crypto assets deemed securities.

eToro paid a $1.5 million penalty and removed dozens of tokens from its U.S. platform, retaining only three out of a total of 74 on offer.

“The settlement was completely voluntary, and we neither admitted nor denied anything,” McCormick said.

“As part of that voluntary process, we decided to take some assets off the platform, but the settlement also gave us the ability to add assets on the platform when we thought the time was right and appropriate,” he added.

Edited by Sebastian Sinclair

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May 28, 2025 0 comments

Crypto Trends

Europe’s Biggest Bank Rolls Out Settlement Service

by admin May 25, 2025

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HSBC has rolled out Hong Kong’s first settlement service that uses blockchain technology. It turns regular bank deposits into digital tokens. That means companies can move money almost instantly.

Payments may cost less and happen faster than on traditional systems, according to Lewis Sun, HSBC’s global head of domestic and emerging payments for global payments solutions.

Tokenized Deposit Program

Based on reports, HSBC’s new tokenized deposit program lets firms swap regular deposits for tokens on a blockchain platform. Companies keep their dollars on the bank’s balance sheet, but they can send and receive them like digital coins.

Sun says this approach can cut out extra fees and delays. It also helps track every payment on-chain, so firms know where their cash is at all times.

HSBC LAUNCHES HONG KONG’S FIRST BLOCKCHAIN SETTLEMENT SERVICE

HSBC debuted a blockchain-based settlement platform using tokenized HKD and USD deposits, with Ant International completing the first transaction.

The service will expand across Asia and Europe later this year.… pic.twitter.com/WNMMqs7Owa

— Crypto Town Hall (@Crypto_TownHall) May 24, 2025

Round-The-Clock Payments

According to HSBC, the service runs 24 hours a day. Corporate clients can send Hong Kong dollars and US dollars between HSBC Hong Kong wallets any time.

That’s a big change from standard banking, where transfers often pause overnight or on weekends. Real-time transfers mean treasurers can react quickly to market moves or urgent needs.

Total crypto market cap at $3.32 trillion on the daily chart: TradingView.com

Pilot With Ant International

Ant International, an affiliate of Alibaba Group Holding, was the first client to test the system. It used Ant’s Whale platform to move funds instantly, HSBC said. After that pilot in May, the bank adopted those lessons into its live service.

Kelvin Li, general manager of platform tech at Ant International, called tokenization a bridge between traditional banking and blockchain. He added that the project aimed to make treasury work more transparent and efficient.

Image: CFA Institute Blogs

Regulatory Support And Expansion

HSBC’s rollout is backed by the Hong Kong Monetary Authority’s Supervisory Incubator for Distributed Ledger Technology. The bank is one of several that have run proof-of-concept trials under the HKMA’s tokenization program.

In August, the HKMA set up a central bank digital currency testing regime. Six firms, including HSBC, began experimenting with tokenized money for digital asset deals.

Hong Kong Taps Blockchain

That move pushed Hong Kong closer to interbank blockchain settlements. HSBC plans to extend its service to Asian and European markets in the second half of 2025.

The new system may transform the way large companies handle cash. They won’t have to wait until opening time or be hit with unexpected charges. Instant information on each payment translates into clearer views of liquidity throughout the day.

But the project also comes with challenges. Firms must refresh their back-offices so that they can interact with tokens. And blockchain platforms need to remain secure from intrusions or technical glitches.

HSBC is the largest bank in Europe in terms of assets, according to the latest ranking of the 50 biggest European lenders published by the S&P Global Market Intelligence.

Featured image from PYMNTS chart from TradingView

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May 25, 2025 0 comments