Kroll BlockFi Settlement: $13.25M Payout, Eligibility, and Timing

The Kroll BlockFi settlement is a $13.25 million securities class action payout for roughly 89,000 people who held BlockFi Interest-Bearing Accounts between January 1, 2019, and November 28, 2022. Judge Claire C. Cecchi gave the settlement final approval on December 5, 2025, and Kroll, the court-appointed claims administrator, is preparing to distribute funds. No payout date has been announced as of mid-2026.¹²

Who Qualifies and What You’ll Receive

The settlement class covers every person who invested, deposited, or acquired assets in a BlockFi Interest-Bearing Account, including BIAs, BlockFi Private Yield, and the BlockFi Private Client program, at any point between January 1, 2019, and November 28, 2022.¹

You don’t need to file a claim form. Distributions are automatic for anyone in the class who did not opt out by the November 20, 2025 deadline. Kroll calculates each person’s share using BlockFi’s existing records of allowed bankruptcy claims, so eligibility and account value are pulled from data the company already has on file.³

Payments are pro rata. After legal fees and administrative costs are deducted, the remaining net fund is split in proportion to the value of each class member’s account as of November 28, 2022, measured by the allowed claim in BlockFi’s Chapter 11 case. Larger accounts receive larger shares; smaller accounts receive smaller shares.³

When Kroll Will Pay Out

No distribution date has been set. The settlement website says Kroll is “actively moving forward the next steps in preparation for distribution” and that updates will be posted as they become available.¹

To check status or ask about your account, you can:

Visit blockfisecuritiessettlement.com
Call (833) 876-2075
Email info@blockfisecuritiessettlement.com

Where the Money Comes From

The $13.25 million comes from what’s left of a directors-and-officers insurance policy, not from the personal assets of the seven individual defendants named in the case (Zachary Prince, Flori Marquez, Tony Lauro, Jennifer Hill, Amit Cheela, David Olsson, and Samia Bayou). BlockFi itself is not a defendant in this action.⁴¹

Deductions from the gross fund include:

$2.7 million in attorneys’ fees and expenses to lead counsel Pomerantz LLP and Squitieri & Fearon, LLP, about 20.4% of the total.
Administrative costs capped at $100,000.
$10,000 compensatory awards to each of the four co-lead plaintiffs (Cameron Wyatt, Trey Greene, Pham Duy Anh Dang, and Arman Reyes), paid out of the fee award rather than on top of it.

⁴

This Is Separate From Your Bankruptcy Payout

Kroll also administers distributions in BlockFi’s Chapter 11 bankruptcy, and the two processes are distinct. The bankruptcy plan was confirmed in September 2023, and convenience-class creditors began receiving payouts (50% of their allowed claims, up to $1,500) in February 2024.⁵ A March 2024 settlement with FTX gave BlockFi’s estate $874.5 million in claims against FTX and Alameda, which were later sold at a premium. Haynes Boone, counsel for the bankruptcy estate, described the result as a 100% recovery on all allowed creditor claims, totaling more than $1 billion.⁶

The $13.25 million securities settlement is an additional recovery on top of anything you received through the bankruptcy process. It’s funded by insurance, not by the estate.

What the Lawsuit Alleged

The consolidated case, In re BlockFi Inc. Securities Litigation (Case No. 2:23-cv-01165-CCC-LDW), accused BlockFi officers and directors of violating federal securities laws in two ways. First, that BlockFi issued its interest-bearing accounts without registering them as securities. Second, that the defendants made misleading statements, including claims that BIAs were equivalent to federally insured bank accounts, that BlockFi would not concentrate its investments, and that loans went to safe institutional counterparties.¹

The defendants denied all allegations of wrongdoing. The settlement resolves the claims without any finding of liability.⁴

1
BlockFi Securities Settlement. In Re BlockFi Inc. Securities Litigation Settlement
2
Law360. NJ Judge Signs Off on $13M BlockFi Settlement
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BlockFi Securities Settlement. In Re BlockFi Inc. Securities Litigation Settlement – FAQ
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U.S. District Court, D.N.J. In re BlockFi Inc. Securities Litigation, Case Documents
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Kroll. BlockFi Distributions
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Haynes Boone. Haynes Boone Secures 100 Percent Recovery for BlockFi Creditors