In the wake of financial scandals that rocked the investing and crypto worlds, Robinhood and FTX continue to face intense legal scrutiny in 2025. Investors who lost money due to deceptive practices, platform failures, or corporate mismanagement now have an opportunity to seek compensation through lawsuits and class action settlements.
This guide provides an updated breakdown of the legal actions against Robinhood and FTX, how much investors could recover, and what steps to take if you were affected.
Robinhood Lawsuits: What’s Happening in 2025?
Robinhood, the popular trading app, has been under legal fire since its controversial GameStop trading halt in early 2021. In 2025, investors are still pursuing compensation in several key lawsuits.
Key Allegations Against Robinhood:
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Market manipulation by halting trading on select stocks during high volatilityMisrepresentation of “free trading” while selling order flow to market makersFailure to disclose risks during meme stock rallies and crypto spikesPlatform outages preventing users from executing trades during peak timesImproper margin calls and forced liquidations
Many of these allegations are now consolidated into class action lawsuits that continue to move through federal court.
2025 Robinhood Class Action Status
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In re: Robinhood Outage Litigation: Plaintiffs allege losses due to trading downtime. Still active.Order Flow Misrepresentation Case: Investigating whether Robinhood failed to disclose how selling user data to market makers impacted pricing.GameStop Short Squeeze Suit: Claims that Robinhood colluded with hedge funds to limit retail investors’ ability to trade meme stocks.Crypto Margin Trading Claims: New 2025 filings allege Robinhood mishandled crypto margin accounts and liquidated holdings improperly during 2022–2023 crashes.
Potential Compensation:Legal experts expect affected users could receive $50 to $500 or more, depending on account activity and confirmed losses. No settlements have been finalized yet as litigation is ongoing.
How to Join the Robinhood Class Action
You may be eligible to join a class action or receive a payout if:
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You were a Robinhood user from 2019–2023You lost money due to a trading halt, app outage, or margin callYou were prevented from buying volatile stocks or crypto during peak eventsYou received a legal notice by email or in-app message
Stay updated via class action portals like TopClassActions.com or contact a financial law firm for inclusion.
FTX Lawsuits: Where Things Stand in 2025
The collapse of FTX in late 2022 sent shockwaves through the crypto industry. Once the second-largest crypto exchange, FTX’s sudden implosion led to billions in lost investor funds and a wave of civil and criminal lawsuits.
What Happened:
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CEO Sam Bankman-Fried was convicted in 2023 for fraud, conspiracy, and misuse of customer assetsOver $8 billion in customer funds were reportedly missingFTX filed for Chapter 11 bankruptcy, freezing user withdrawals
In 2025, investors are still working through bankruptcy proceedings and civil lawsuits to recover their funds.
2025 FTX Investor Compensation UpdatesBankruptcy Claims:
FTX’s bankruptcy court is processing claims through a centralized online portal. As of early 2025:
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Over 100,000 customers have filed claimsThe bankruptcy estate has recovered $7.5 billion in assetsSome partial repayments are expected by late 2025 or 2026, depending on crypto asset pricing and recovered funds
Class Action Lawsuits:
Separate from the bankruptcy case, investors are suing:
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Celebrity endorsers (e.g., Tom Brady, Larry David) for promoting a fraudulent platformAuditors and institutional investors who backed FTXFTX executives for negligence, breach of fiduciary duty, and fraud
Some suits are consolidated in federal court as part of multi-district litigation (MDL) in Florida and California.Estimated Recovery:Payouts will vary widely. Early estimates suggest:
| Investor TypePotential Recovery (2025)Retail crypto investors20% to 50% of holdings, depending on coin typeInstitutional investorsNegotiated settlements (likely higher)Endorsed accountsUp to $1,000 in settlements if lawsuit succeedsBankruptcy claimsBased on verified balance at time of collapse |
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How to File a Claim for FTX Losses
Step 1: Visit the FTX Claims PortalGo to claims.ftx.com to verify your account and submit documents.Step 2: Provide DocumentationInclude:
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Login credentialsWallet balancesDeposit and withdrawal historyScreenshots (if you can no longer access the platform)
Step 3: Track Bankruptcy NoticesAll updates are published through the official portal and bankruptcy court website.Step 4: Join Class Action (Optional)Even if you’ve filed in bankruptcy, you can still join class action suits for:
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FraudFalse advertisingCelebrity involvement
Contact a crypto fraud lawyer or join existing suits via ClassAction.org.
Are You Eligible for Compensation?
You may qualify if:✅ You used FTX between 2020–2022✅ You held funds or crypto on the platform when it collapsed✅ You saw promotional content that influenced your decision to invest✅ You were a Robinhood user affected by system failures or trading restrictions✅ You submitted documents by the court’s deadlinesEven if you missed the initial claim window, some appeals or late-filed claims may be accepted with proper justification.
Final Thoughts
The financial world is rapidly evolving—but when platforms fail their users, the law steps in. Robinhood and FTX investors now have legal tools to demand accountability and seek financial recovery.Whether you were misled by an influencer, lost access to your crypto during the crash, or were blocked from trading stocks during market chaos, you may still have a right to compensation.Keep documents, check your eligibility, and don’t miss critical deadlines. In 2025, justice for investors is closer than ever.