If a crypto exchange gets hacked, a class action — one lawsuit filed for many users with the same loss — can proceed if the exchange remains operating. If the exchange files for bankruptcy, that lawsuit pauses and victims must pursue bankruptcy claims instead.
Your path depends on solvency, court orders, and whether payment runs through a lawsuit or a bankruptcy estate. Save transaction records, account statements, and withdrawal freezes. Watch official claims notices.
Official resources:
- Read the official notice from Uscourts — Use this primary source to verify the official announcement.
- Read the official notice from Govinfo — Use this primary source to verify the official announcement.
Table of Contents
- Can victims sue right after a hack?
- Why does bankruptcy pause the lawsuit?
- How does payment work in bankruptcy?
- Can claims against third parties survive?
Can victims sue right after a hack?
Victims can organize quickly when the exchange still exists as a defendant. Cointelegraph reported in its Atomic Wallet class action report that about 50 investors sought a class action for $12 million after Atomic Wallet lost about $100 million across at least 5,500 accounts.
A filing does not guarantee payment. The group must show common harm, find counsel, and collect from a defendant with assets. If funds are gone or the operator is offshore, recovery is harder.
Why does bankruptcy pause the lawsuit?
A bankruptcy filing triggers an automatic stay that temporarily bars lawsuits and collection actions to preserve the estate. Cornell Law School Legal Information Institute explains in its automatic stay overview that the stay covers lawsuits, garnishments, foreclosures, and other debt-collection actions under 11 U.S.C.
§362(a). For class members, the pause is procedural, not a ruling on fault. The court centralizes claims so assets are divided by rule rather than by race to sue.
- Stop counting on hearing dates in the old lawsuit.
- Preserve proof of deposits, balances, and denied withdrawals.
- Follow the bankruptcy court and claims agent for filing instructions.
How does payment work in bankruptcy?
Bankruptcy payment comes as distributions, not as a class-action check. Bitcoin.com News described in its FTX distribution update that FTX's confirmed Chapter 11 plan pays customers through BitGo, Kraken, or Payoneer, with a fifth $900 million payout from July 31, 2026 bringing some customer classes to 105% cumulatively.
That structure changes what to track. Eligibility and amount turn on account records, allowed claim size, and customer class. Distribution method, tax forms, and identity checks can affect timing.
Can claims against third parties survive?
Yes, claims against alleged enablers can continue even when claims against the exchange are channeled into bankruptcy. The Block reported in its FTX third-party settlement report that related FTX customer claims were settled for $54 million from Fenwick & West, $11.75 million from auditor Prager Metis, and $420,000 from Udonis Haslem.
Those deals still required court approval. Fenwick denied wrongdoing while agreeing to pay.