A group of FTX investors and customers has reached a settlement with the collapsed exchange’s co-founder Sam Bankman-Fried. The agreement, if approved by a court, would shield Bankman-Fried from further civil lawsuits in exchange for his cooperation in pursuing other defendants.
The move comes just weeks after Bankman-Fried received a 25-year prison sentence for his criminal conviction on fraud charges. The proposed settlement, filed in Miami federal court, would see plaintiffs in the litigation resolve all claims against him now and in the future.
Other former FTX executives, including Gary Wang, Caroline Ellison, and Nishad Singh, who testified against Bankman-Fried during his trial, were also sued by investors and decided to settle. These individuals have already begun providing information to bolster the plaintiffs’ case.
The focus now shifts to the public figures who promoted FTX to investors, with the lawsuit accusing celebrities like Tom Brady and Shaquille O’Neal, as well as model Gisele Bündchen, of promoting unregistered securities and essentially luring investors into a fraudulent scheme.
Bankman-Fried, in exchange for the lawsuit being dropped against him, has agreed to assist the plaintiffs’ attorneys in building their case against these celebrity endorsers by providing non privileged documents detailing his assets, including his investment in AI startup Anthropic, an affidavit certifying his negative net worth, and relevant information about venture capital firms that invested in FTX.
The plaintiffs’ lawyers, in their court filing seeking approval for the settlement, acknowledged the uncertain outcome of pursuing Bankman-Fried further but stressed his “valuable” role in strengthening their case against the remaining defendants.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/apr/22/
