Frequently Asked Questions

You or someone in your family may have invested, deposited, or otherwise acquired assets in BlockFi Interest-Bearing Accounts between January 1, 2019 and November 28, 2022, both dates inclusive (the “Settlement Class Period”).

This settlement resolves the case known as In re BlockFi Inc. Securities Litigation, No. 2:23-cv-01165-CCC-LDW (D.N.J.). The Court in charge of the case is the United States District Court for the District of New Jersey. The Litigation involves allegations that Defendants violated provisions of the Securities Act of 1933 (“Securities Act”) federal securities laws by issuing BIAs without registering them as securities. The Litigation further involves allegations that Defendants violated provisions of the Securities Exchange Act of 1934 (“Exchange Act”) by allegedly making misrepresentations and/or omissions of material fact in public statements to the investing public concerning, inter alia: (1) the equivalence of BIAs to federally insured bank accounts; (2) whether cryptocurrency in “BlockFi Wallets” would transfer to BlockFi; (3) that BlockFi would not “concentrate” investments; (4) that loans or pledges of crypto assets were to safe institutional counterparties; and (5) the importance of risk management to BlockFi. The Class Action Complaint (“Complaint”) alleges that the misstatements or omissions artificially inflated the prices of BIAs, whose value dropped in response to certain subsequent disclosures. Defendants have denied each of these allegations, and continue to deny each, any, and all allegations of wrongdoing, fault, liability or damage whatsoever asserted in the Litigation. The Settlement shall in no event be construed as, or deemed to be evidence of, liability, fault, wrongdoing, injury, or damages, or of any wrongful conduct, acts, or omissions on the part of Defendants or any of the Releasees, or of any infirmity of any defense, or of any damages to the Plaintiffs or any other Settlement Class Member. The Settlement resolves all of the claims in the Litigation, as well as certain other claims or potential claims, whether known or unknown.

In a class action, one or more persons called plaintiffs sue on behalf of all persons who have similar claims. All of the persons with similar claims are referred to as a class. One court resolves the issues for all class members, except for those who exclude themselves from the class.

Plaintiffs and Defendants do not agree regarding the merits of Plaintiffs’ allegations and Defendants’ defenses with respect to liability or damages, if any, that would be recoverable if Plaintiffs were to prevail at trial on each claim. The issues on which Plaintiffs and Defendants disagree include: (1) whether BIAs are securities under the Securities Act; (2) whether the challenged statements were materially false or misleading or otherwise actionable under federal securities law; (3) whether Defendants had a duty to disclose the allegedly omitted information; (4) whether the Defendants acted with scienter; (5) whether the alleged disclosures were corrective disclosures; (6) the causes of the loss in the value of the alleged securities; and (7) the amount of alleged damages, if any, that could be recovered at trial.
 

This matter has not gone to trial, and the Court has not decided in favor of either Plaintiffs or Defendants. Instead, Plaintiffs and Defendants have agreed to settle the case. Plaintiffs and Lead Counsel believe the Settlement is best for all Settlement Class Members because of the risks associated with continued litigation and the nature of the defenses raised by the Defendants. Among the reasons that Plaintiffs and Lead Counsel believe the Settlement is fair is the uncertainty about whether they will be able to proceed with their claims in light of BlockFi’s bankruptcy, which requires approval by the bankruptcy court to assert claims against Defendants. Further, there is uncertainty about whether Plaintiffs and Lead Counsel will be able to prove that BIAs are securities, that any challenged statement was false or misleading, or that the alleged misstatements and omissions actually caused the Settlement Class any damages and the amount of damages, if any.

The Settlement Class includes all persons or entities, except those who are excluded as described below, who invested, deposited, or otherwise acquired assets in BlockFi Interest-Bearing Accounts between January 1, 2019, and November 28, 2022, both dates inclusive (“Settlement Class Period”) and were injured thereby.
 

If one of your mutual funds invested, deposited, or otherwise acquired assets in a BlockFi Interest-Bearing Account, that alone does not make you a Settlement Class Member. Also, if you redeemed, cashed out, or closed a BlockFi Interest-Bearing Account during the Settlement Class Period, that alone does not make you a Settlement Class Member. You are a Settlement Class Member only if you directly invested, deposited, or otherwise acquired assets in BlockFi Interest-Bearing Accounts during the Settlement Class Period. 

Yes. Excluded from the Settlement Class are (i) Defendants, the officers and directors of BlockFi, at all relevant times, members of their Immediate Families and their legal representatives, heirs, successors, or assigns, and any entity in which Defendants have or had a controlling interest; (ii) Opt-Outs, i.e., those Persons who timely and validly request exclusion from the Settlement Class in accordance with the requirements set forth below; and (iii) Persons who have no compensable damages.

If you are still not sure whether you are included, you can ask for free help. You can contact the Claims Administrator toll-free at (833) 876-2075 or at [email protected].

The proposed Settlement provides for Defendants’ Insurers to pay $13,250,000 into a settlement fund (“Settlement Fund”). The Settlement is subject to Court approval. Also, subject to the Court’s approval, a portion of the Settlement Fund will be used to pay attorneys’ fees (inclusive of litigation expenses to Lead Counsel and compensatory awards to Plaintiffs), with interest. A portion of the Settlement Fund also will be used to pay taxes due on interest earned by the Settlement Fund, if necessary, and the costs of the claims administration, including the costs of printing and mailing postcards providing notice to potential Settlement Class Members and of publishing notice, not to exceed $100,000. After the foregoing deductions from the Settlement Fund have been made, the amount remaining (“Net Settlement Fund”) will be distributed to Settlement Class Members eligible to receive payments from the Net Settlement Fund according to the Plan of Allocation to be approved by the Court (“Authorized Claimants”).

Your share of the Net Settlement Fund will depend on multiple factors, including: (i) the value of your BlockFi Interest-Bearing Accounts as of November 28, 2022, as determined by your allowed claim in the BlockFi Chapter 11 proceedings; (ii) the total value of BlockFi Interest Bearing Account of Settlement Class Members participating in the Settlement; (iii) the amount of administrative costs, including the costs of notice (not to exceed $100,000); and (iv) the amount awarded by the Court to Lead Counsel for attorneys’ fees, inclusive of costs and expenses, and compensatory awards to Plaintiffs.

The Claims Administrator will determine each Settlement Class Member’s pro rata share of the Net Settlement Fund based upon the value of each Settlement Class Member’s BlockFi Interest-Bearing Accounts as of November 28, 2022, i.e., the date BlockFi filed for bankruptcy (“Pro Rata Share”), as determined by each Settlement Class Member’s allowed claim in the BlockFi Chapter 11 proceedings associated with their eligible account(s). The Pro Rata Share formula is the basis upon which the Net Settlement Fund will be proportionately allocated to the Settlement Class Members with valid claims. The Pro Rata Share formula is not intended to be an estimate of the amount that a Settlement Class Member might have been able to recover after a trial. 

You do not need to do anything to qualify for a payment. The Claims Administrator will review BlockFi’s records of allowed claims associated with BlockFi Interest-Bearing Accounts and determine whether you are an Authorized Claimant and the amount of your Pro Rata Share.

The Court will hold a Settlement Hearing on December 11, 2025, at 11:00 a.m. ET to decide whether to approve the Settlement. If the Court approves the Settlement, there might be appeals afterwards. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. It also takes time for all the Pro Rata Shares to be processed. Please be patient.

Unless you exclude yourself from the Settlement Class by the November 20, 2025 deadline, you will remain a member of the Settlement Class and will be bound by the release of claims against Defendants and other Releasees if the Settlement is approved. That means you, Plaintiffs, and all other Settlement Class Members (or their successors, assigns, executors, administrators, representatives, attorneys, and agents, in their capacities as such) will release (agreeing never to sue, continue to sue, or be part of any other lawsuit) as against Defendants and other Releasees any and all claims arise out of or are based upon, in any way, directly or indirectly, any investment, deposit of assets or any other relationship with BlockFi. It means that all of the Court’s orders will apply to you and legally bind you. That means you will accept a share of the Net Settlement Fund as sole compensation for any losses you suffered in the investment, deposit, or other acquisition of assets in BlockFi Interest-Bearing Accounts during the Settlement Class Period. The specific terms of the release are included in the Stipulation and Agreement of Settlement. Note, however, that certain releases in favor of Defendants and other Releasees have previously occurred in connection with BlockFi’s bankruptcy. Whether you remain in the Settlement Class or exclude yourself in this case will have no impact on any release of your claims against Defendants and other Releasees that may have already occurred in connection with BlockFi’s bankruptcy if you did not exclude yourself from those releases. Participating in or excluding yourself from the settlement in this case also will neither increase nor decrease any recovery you may be entitled to receive in connection with BlockFi’s bankruptcy.

If you do not want a payment from this Settlement, and you want to keep any right you may have to sue or continue to sue Defendants or other Releasees on your own about the claims being released in this Settlement, then you must take steps to remove yourself from the Settlement. This is called excluding yourself, or “opting out,” from the Settlement. Note, however, that certain releases in favor of Defendants and other Releasees have previously occurred in connection with BlockFi’s bankruptcy. Whether you remain in the Settlement Class or exclude yourself in this case will have no impact on any release of your claims against Defendants and other Releasees that may have already occurred in connection with BlockFi’s bankruptcy if you did not exclude yourself from those releases. Participating in or excluding yourself from the settlement in this case also will neither increase nor decrease any recovery you may be entitled to receive in connection with BlockFi’s bankruptcy.

To exclude yourself from the Settlement, you must mail a letter stating that you “request exclusion from the Settlement Class in In re BlockFi Inc. Securities Litigation, No. 2:23-cv-01165-CCC-LDW (D.N.J.).” To be valid, the letter must state (A) your name, BlockFi client ID number, address, telephone number, and e-mail address (if any); (B) the dates and dollar amounts of all investments, deposits, acquisitions, sales, redemptions, withdrawals, or dispositions in BlockFi Interest-Bearing Accounts during the Settlement Class Period; and (C) the contents and value of your BlockFi Interest-Bearing Account as of November 28, 2022. In order to be valid, such request for exclusion must be submitted with documentary proof (i) of each investment, deposit, acquisition, sale, redemption, withdrawal, or disposition in BlockFi Interest-Bearing Accounts during the Settlement Class Period and (ii) demonstrating your status as a beneficial owner of the BlockFi Interest-Bearing Account. Any request for exclusion must be signed and submitted by you, as the beneficial owner, under penalty of perjury. You must submit your exclusion request so that it is received no later than November 20, 2025 at:

BlockFi Securities Litigation
c/o Kroll Settlement Administration
PO Box 225391
New York, NY 10150-5391
Tel.: (833) 876-2075

[email protected]

You cannot exclude yourself by telephone or by e-mail. If you properly exclude yourself, you will not receive a payment from the Net Settlement Fund, you cannot object to the Settlement, and you will not be legally bound by the judgment in this case. 

No. Unless you exclude yourself by following the instructions above, you give up any rights to sue the Defendants or the other Releasees for the claims being released in this Settlement. If you have a pending lawsuit against the Releasees or related to any Released Claims, speak to your lawyer immediately, since you must exclude yourself from this Settlement Class to continue your own lawsuit. Note, however, that certain releases in favor of Defendants and other Releasees have previously occurred in connection with BlockFi’s bankruptcy. Whether you remain in the Settlement Class or exclude yourself in this case will have no impact on any release of your claims against Defendants and other Releasees that may have already occurred in connection with BlockFi’s bankruptcy if you did not exclude yourself from those releases. Participating in or excluding yourself from the settlement in this case also will neither increase nor decrease any recovery you may be entitled to receive in connection with BlockFi’s bankruptcy. Remember, the exclusion deadline is November 20, 2025.

No. If you exclude yourself, you will not receive a Pro Rata Share.

The Court has appointed Pomerantz LLP and Squitieri & Fearon LLP as Lead Counsel to the Class, to represent you and the other Settlement Class Members. If you want to be represented by your own lawyer, you may hire one at your own expense. Contact information for Pomerantz LLP and Squitieri & Fearon LLP are provided in Question 18.

Lead Counsel have expended considerable time litigating this Action on a contingent-fee basis and have paid for the expenses of the case themselves. They have not been paid attorneys’ fees or reimbursed for their expenses in advance of this Settlement. Lead Counsel have done so with the expectation that, if they are successful in recovering money for the Settlement Class, they will receive an award of attorneys’ fees (inclusive of their litigation expenses and awards for Plaintiffs) from the Settlement Fund, as is customary in this type of litigation. Lead Counsel will not receive attorneys’ fees or be reimbursed for their litigation expenses except from the Settlement Fund. Therefore, Lead Counsel will file a motion at the Settlement Hearing asking the Court for an award of attorneys’ fees in an amount not greater than $2.7 million, or 20.4% of the Settlement Fund, for their work in this Action, reimbursement of litigation expenses, and compensatory awards to Plaintiffs. The Court may award less than this amounts. Any amount awarded by the Court will come out of the Settlement Fund.

If you are a Settlement Class Member, you can tell the Court you do not agree with the proposed Settlement, any part of the Settlement, the proposed Plan of Allocation, and/or Lead Counsel’s motion for attorneys’ fees and expenses and application for a compensatory award to Plaintiffs. You can write to the Court setting out your objection. The Court will consider your views. 

To object, you must send a signed letter saying that you object to the proposed Settlement in In re BlockFi Inc. Securities Litigation, No. 2:23-cv-01165-CCC-LDW (D.N.J.). Be sure to include (1) your name, BlockFi client ID number, address, telephone number, and your signature; (2) sufficient documentation of the dates and dollar amounts of all investments, deposits, acquisitions, sales, redemptions, withdrawals, or dispositions in BlockFi Interest-Bearing Accounts during the Settlement Class Period, in order to show membership in the Settlement Class; (3) all grounds for the objection, including any legal support known to you or your counsel; (4) the name, address and telephone number of all counsel, if any, who represent you, including your former or current counsel who may be entitled to compensation in connection with the objection, and (5) the number of times you and/or your counsel has filed an objection to a class action settlement in the last five years, the nature of each such objection in each case, the jurisdiction in each case, and the name of the issuer of the security or seller of the product or service at issue in each case and the identity of each case, by name, court and docket number. 

If you object to either the Settlement or the requested attorney's fees, you subject yourself to the jurisdiction of the District Court in this matter and consent to being deposed in your district of residence and producing in advance of a deposition any responsive documents to a discovery request prior to the Settlement Hearing.

Attendance at the Settlement Hearing is not necessary. Objectors wishing to be heard orally at the Settlement Hearing must indicate in their written objection that they intend to appear at the Settlement Hearing and identify any witnesses they may call to testify or exhibits they intend to introduce into evidence at the Settlement Hearing. 

Be sure to mail or deliver copies of any objections, papers and briefs to each of the addresses listed below such that they are received no later than November 20, 2025: 
 

Objecting is simply telling the Court you do not like something about the Settlement or some portion thereof. You can object only if you stay in the Settlement Class. Requesting exclusion is telling the Court you do not want to be part of the Settlement Class or the Settlement. If you exclude yourself, you cannot object to the Settlement because it no longer concerns you. If you stay in the Settlement Class and object, but your objection is overruled, you will not be allowed a second opportunity to exclude yourself.

The Court will hold a hearing to decide whether to approve the proposed Settlement. You may attend, and you may ask to speak, but you do not have to.

The Court will hold a hearing in this case on December 4, 2025, at 2:00 p.m. ET at the United States District Court for the District of New Jersey, Martin Luther King Building & U.S. Courthouse, 50 Walnut Street, Courtroom 5B, Newark, NJ 07101. 

At this hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate and should be approved by the Court; whether an Order and Final Judgment as provided in the Stipulation and Agreement of Settlement should be entered; and whether the proposed Plan of Allocation should be approved. If there are objections, the Court will consider them, and the Court will listen to people who have asked to speak at the hearing. The Court may also decide how much should be awarded to Lead Counsel for attorneys’ fees (inclusive of expenses and a compensatory award to Plaintiffs for service to the Settlement Class). 

We do not know how long these decisions will take. You should be aware that the Court may change the date and time of Settlement Hearing without another notice being sent to Settlement Class Members. If you want to attend the hearing, you should check with Lead Counsel beforehand to be sure that the date and/or time has not changed. 

No. Lead Counsel will answer any questions the Court may have. However, you are welcome to attend at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mail your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary. Settlement Class Members do not need to appear at the hearing or take any other action to indicate their approval.

If you object to the Settlement, you may ask the Court for permission to speak at the Settlement Hearing. To do so, you must include with your objection (see question 18 above) a statement that you “intend to appear in In re BlockFi Inc. Securities Litigation, No. 2:23-cv-01165-CCC-LDW (D.N.J.).” Persons who intend to object to the Settlement, the Plan of Allocation, and/or the application for an award of attorneys’ fees, costs, and expenses, and desire to present evidence at the Settlement Hearing, must include in their written objections the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the Settlement Hearing. You cannot speak at the hearing if you exclude yourself. 

If you do nothing, and the Claims Administrator determines that you are eligible to receive a Pro Rata Share of the Net Settlement Fund, you will receive a payment from the Settlement. However, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants or the Releasees about the Released Claims (as defined in the Stipulation and Agreement of Settlement) ever again. Note, however, that certain releases in favor of Defendants and other Releasees have previously occurred in connection with BlockFi’s bankruptcy. Whether you remain in the Settlement Class or exclude yourself in this case will have no impact on any release of your claims against Defendants and other Releasees that may have already occurred in connection with BlockFi’s bankruptcy if you did not exclude yourself from those releases. Participating in or excluding yourself from the settlement in this case also will neither increase nor decrease any recovery you may be entitled to receive in connection with BlockFi’s bankruptcy.

The Notice summarizes the proposed Settlement. More details are in the Stipulation and Agreement of Settlement. The Stipulation and Agreement of Settlement is the controlling document describing the proposed Settlement, and its terms govern anything to the contrary in this Notice. You can get a copy of the Stipulation and Agreement of Settlement and obtain answers to common questions regarding the proposed Settlement here or by contacting the Claims Administrator toll-free at (833) 876-2075.

For even more detailed information concerning the matters involved in this Action, see the Stipulation and Agreement of Settlement, the pleadings in the Litigation, the papers filed in support of the Settlement, and the orders entered by the Court, posted here. For a fee, all papers filed in this Action are also available at www.pacer.gov.