Key Insights:
- Sam Bankman-Fried agrees to aid legal actions against FTX endorsers, contributing valuable information and documents.
- Celebrities like Tom Brady and Shaquille O’Neal face lawsuits for promoting FTX as part of an alleged Ponzi scheme.
- FTX investors may recover more from settlements with promoters, which are estimated to be worth around $1.3 million.
Sam Bankman-Fried, the co-founder of the now-defunct cryptocurrency exchange FTX, has reached a settlement agreement that absolves him from civil liabilities concerning the platform’s dramatic collapse. This development follows his recent 25-year prison sentence for defrauding investors of billions. Consequently, Bankman-Fried will now support plaintiffs in their ongoing litigation against various FTX promoters.
FTX investors move to settle with SBF in exchange for information to go after celebrity boosters
A group of investors has reached a settlement in their civil case against former FTX CEO Sam Bankman-Fried. In exchange for his cooperation, they’re pursuing legal action against… pic.twitter.com/UCU4w4cbmj
— Whale Bill🐳 (@whalebillz) April 19, 2024
The proposed settlement, filed in Miami’s federal court, indicates that plaintiffs will drop all present and future claims against Bankman-Fried. Moreover, his cooperation involves providing nonprivileged documents, including those detailing his investment in the artificial intelligence startup Anthropic and others that could expose his former associates.
Gary Wang, Caroline Ellison, and Nishad Singh, former FTX executives who also testified against Bankman-Fried, have settled with investors as well. They have started to submit information that could fortify the plaintiff’s case. This leaves celebrity endorsers such as Tom Brady, Shaquille O’Neal, and Gisele Bundchen under scrutiny for their promotional roles, which allegedly misled FTX’s investors.
Bankman-Fried’s agreement includes an exhaustive disclosure of his financial dealings and his network within the artificial intelligence sector. These actions delineate his commitment to rectifying FTX’s repercussions by assisting Adam Moskowitz and his team in the recovery of the estate’s assets for aggrieved customers.
Brady, O’Neal, and Bundchen’s legal representatives have not yet commented on the unfolding legal situation. Additionally, the settlement encompasses arrangements with other notable figures, including Trevor Lawrence, who had engaged with FTX early in his career.
The case, which consolidates several lawsuits against FTX insiders and celebrity promoters, is currently under review by a Miami judge. This judge will decide whether to approve the settlement, thereby influencing the direction of the ongoing litigation.
Mark Botnick, a spokesman for Bankman-Fried, expressed that his client is determined to address the losses faced by FTX customers and is eager to cooperate further to ensure a fair resolution of the case.