Reported 4 months ago
FTX has requested a U.S. judge to stop external lawsuits against company insiders and venture capital firms linked to the collapse of the bankrupt crypto exchange. The lawsuits, including class action complaints by FTX customers, threaten a $16 billion recovery plan for repaying customers in bankruptcy. The litigation resumed following FTX founder Sam Bankman-Fried's criminal trial, where he was sentenced to 25 years in prison for misappropriating customer funds. FTX expressed concerns over class action lawyers seeking substantial legal fees despite providing little benefit to customers. The company aims to repay customers by selling assets and pursuing legal action against individuals involved in the collapse.
Source: YAHOO