FTX seeks to stop outside litigation against insiders, VC firms | Reuters

FTX on Tuesday asked a U.S. judge to stop outside litigation against company insiders and venture capital firms accused of playing a role in the bankrupt crypto exchange’s collapse, saying the lawsuits undermine FTX’s own effort to repay customers.

The lawsuits, including class action complaints filed by FTX customers, could eat into an estimated $16 billion recovery that the company intends to pay customers in its bankruptcy, FTX said in court documents filed Tuesday in federal court in Miami.

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FTX said that the class action lawyers were trying to pocket up to $400 million in legal fees “despite having to date provided next to no monetary benefit” for FTX customers and other victims.

Source: FTX seeks to stop outside litigation against insiders, VC firms | Reuters