Bloomberg Law: FTX Looks at Years of Lawsuits to Recover Billions From Customers

The sudden bankruptcy of cryptocurrency exchange FTX opens the company up to lawsuits that will likely be filed by creditors seeking billions of dollars in assets. Debtors can attempt to recover the billions of dollars that customers withdrew in the days and months before FTX’s Chapter 11 filing. “Bankruptcy court is a fishbowl. Every decision FTX made in recent weeks will be highly scrutinized by a litany of players—committees, potentially an examiner or a trustee, other investors—with a range of tools at their disposal,” said Daniel Shamah, a partner at O’Melveny & Myers LLP. “Expect this to be a long, expensive process that will take years to play out.”

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