7 months ago
45 ARTICLE AD
Bankman-Fried's cooperation could strengthen investors' case against FTX promoters.
FTX investors have finalized an agreement with the exchange’s former CEO, Sam Bankman-Fried, to end their legal disputes in favor of his assistance in pursuing cases against celebrity endorsers.
Pending the Southern District of Florida court’s approval, the settlement proposes to conclusively resolve all claims against Bankman-Fried released by FTX investors. If approved, this settlement would free him from additional civil charges after his 25-year prison sentence for fraud.
As part of the deal, Bankman-Fried “shall reasonably cooperate with Class Counsel,” offering testimony and documents to help the class action against FTX and facilitate victim recovery. These documents include details of his investments in the AI company Anthropic.
Bankman-Fried would also disclose information about his connections and dealings with companies and celebrities, including Tom Brady, Stephen Curry, Naomi Osaka, Kevin O’Leary, and Gisele Bündchen, to name a few.
Following FTX’s bankruptcy in November 2022, investors filed a class-action lawsuit accusing the crypto exchange and its co-founder, Sam Bankman-Fried, of violating Florida law and misleading customers. The lawsuit alleges this misconduct resulted in billions of dollars in investor losses.
The suit also targets celebrities who promoted FTX’s controversial Yield-Bearing Accounts (YBAs). Plaintiffs claim these endorsements fueled investor interest in the unregulated accounts, ultimately contributing to their financial losses when FTX halted customer withdrawals.
The list of defendants additionally includes the prestigious law firm Sullivan & Cromwell (S&C). In February, a group of creditors filed a separate lawsuit against the firm, alleging its involvement in FTX’s fraudulent activities.
The investors’ potential gains from the settlement with FTX promoters are estimated at $1.3 million.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
