The U.S. Securities and Exchange Commission (SEC) has consented to delay the collection of a $30 million fine from the financially distressed cryptocurrency lender, BlockFi, until its creditors have been paid back, as indicated in a recent court filing.

BlockFi, currently in bankruptcy, still owes $30 million from a $50 million penalty levied by the SEC. The penalty was due to BlockFi’s failure to register its lending products for offering and sale.

Despite agreeing to settle the fine in February 2022, BlockFi, after declaring bankruptcy in the aftermath of the FTX collapse, suggested that the SEC’s payment should be made after other debts have been settled.

The SEC initially disagreed with this, arguing that they should be paid simultaneously with other creditors. However, a court decision on Thursday now means the regulator will wait to collect its $30 million.

In May, a judge in New Jersey ruled that BlockFi’s customers could reclaim $300 million held in custodial wallets on the platform.

BlockFi’s bankruptcy estate has devised a reorganization plan set to be presented in court in July. The crypto lender has stated that the reimbursement of funds to clients and creditors largely hinges on the success of its lawsuits against former business partners FTX and Alameda, which could potentially influence over $1 billion in recoveries.