BlockFi Settles With Management Over Crypto Lender’s Collapse

BlockFi Inc.’s past business with FTX appeared legitimate and gave management no reason to worry about lending to Sam Bankman-Fried’s crypto platform before it melted down amid allegations of fraud last year, according to a probe by independent BlockFi directors and its lawyers.

Findings of the seven month investigation were made public Monday in New Jersey bankruptcy court to support a BlockFi settlement that would resolve potential legal claims related to the crypto lenders’ collapse against co-founders Zac Prince and Flori Marquez, as well as other company officers.

Management, in exchange, has agreed to assist company lawyers in ...