A group of victims of bankrupt cryptocurrency exchange FTX announced on Friday that they have reached a settlement agreement with the recently sentenced founder of FTX, Sam Bankman-Fried (SBF). They have dropped their claims against SBF in exchange for his assistance in holding responsible those who promoted FTX celebrities.
Background:
SBF Appeals for Survival! Challenging a 25-year sentence, requesting to remain in custody in New York
FTX founder SBF, who was recently sentenced to 25 years, has now received a settlement agreement from a group of FTX investors, which was submitted to the Miami Federal Court on Friday. They have agreed to withdraw their lawsuit and cancel their claims against SBF in exchange for his cooperation, as reported by Bloomberg. If approved by the judge, this agreement will relieve SBF of civil liability. Other former FTX executives, including Gary Wang, Caroline Ellison, and Nishad Singh, who testified against SBF, have also been sued by investors but have also agreed to settle.
According to court documents, these former FTX executives have already started providing information to assist the plaintiffs in holding responsible celebrities, sports stars, and internet celebrities who promoted FTX.
As part of the settlement agreement, SBF has agreed to assist the plaintiffs’ lawyers in investigating FTX spokespersons. He will provide all non-privileged documents, detail his assets, his investment in AI startup Anthropic, an affidavit stating his negative net worth, and documents of other defendants in the civil lawsuit.
SBF will also provide information regarding venture capital investments in FTX and the accountants and lawyers involved in the collaboration with FX.
Celebrities accused of promoting Ponzi schemes:
After the collapse of FTX in November 2022, FTX victims filed a collective lawsuit against SBF and the celebrities who endorsed FTX, including NBA star Stephen Curry, Lakers Hall of Famer Shaquille O’Neal, MLB star Shohei Ohtani, and Japanese tennis superstar Naomi Osaka, among others.
These celebrities have been accused of promoting unregistered securities and luring investors into Ponzi schemes. If these FTX victims win the lawsuit, their compensation could far exceed the amount they gave up in the settlement. The settlement amount for the promoters in this agreement is approximately $1.3 million.
Related Reports:
SBF’s Century Trial Concludes: 25 years imprisonment, $11 billion confiscated. What did he say during the hearing?
SBF: I am not a supervillain! The U.S. government sought a 50-year sentence to lock me up for life.
From SBF to CZ, why are cryptocurrency exchange founders always accused of money laundering?