FTX Reaches Settlement to Streamline Exchange-Collapse Lawsuits

FTX struck a deal with plaintiffs suing over its collapse, which the fallen crypto exchange says will benefit creditors and allow it to focus on its bankruptcy.

The settlement resolves competing claims to estate assets asserted by plaintiffs in multidistrict litigation and by FTX’s bankrupt estate, the parties said in Wednesday filings in the US Bankruptcy Court for the District of Delaware and the US District Court for the Southern District of Florida.

It would allow FTX to focus on its bankruptcy proceeding, minimize litigation costs, and maximize the value it can distribute to customers harmed by its 2022 collapse, ...