Crypto Platform Gets Settlement Nod in Suit Over Collateral

Maker Ecosystem Growth Holdings Inc.'s proposed $1.16 million class settlement with its cryptocurrency account holders merits preliminary approval, a federal court has ruled.

Judge Maxine M. Chesney gave the green light in a hearing in the US District Court for the Northern District of California.

Peter Johnson sued on behalf of a proposed class of “Vault” holders on the Maker platform. Johnson, who used the decentralized finance platform, alleges Maker—also called Metronym—misrepresented the risks associated with it by promising that its own digital currency, DAI, was shored up by other digital assets.

Maker assured its investors that if the value ...