- Some of the targeted promoters include celebrities like Tom Brady and Shaquille O’Neal.
- Bankman-Fried, recently sentenced to 25 years in prison for fraud, is now freed from civil liability under the settlement.
In the latest development surrounding the collapse of cryptocurrency exchange FTX, investors have agreed to drop claims against co-founder Sam Bankman-Fried in exchange for his cooperation in pursuing other defendants.
This action, following Bankman-Fried’s recent sentencing for fraud, signals a shift in focus toward the high-profile promoters who touted FTX to investors and customers, Bloomberg reported. Notably, Bankman-Fried, who was recently sentenced to 25 years in prison for fraud related to FTX, will be freed from civil liability under this settlement.
However, in exchange, he has pledged to assist plaintiffs in going after other individuals implicated in the exchange’s collapse. Among the remaining defendants are celebrities, athletes, and influencers who promoted FTX.
Notable figures such as Tom Brady, Shaquille O’Neal, and Gisele Bundchen face allegations of promoting the exchange’s unregistered securities and luring investors into what plaintiffs describe as a Ponzi scheme.
See Related: FTX’s Former CEO Sam Bankman Fried To Skip Second Trial
FTX Investors’ Strategy Shift
As part of the settlement, Bankman-Fried has committed to providing crucial information about FTX’s endorsers, as well as venture capital firms and professionals associated with the exchange. This includes details about his assets, investments, and dealings with entities linked to the crypto exchange. By cooperating with plaintiffs’ lawyers, Bankman-Fried aims to rectify the aftermath of FTX’s collapse and assist in the pursuit of justice for affected investors.
The settlement, valued at approximately $1.3 million in total, underscores the potential gains for investors if they succeed in their pursuit of the remaining defendants. In response to inquiries, a spokesperson for Bankman-Fried told Bloomberg that his client was committed to addressing the fallout from FTX’s demise
With the civil litigation proceeding under the FTX Cryptocurrency Exchange Collapse Litigation, the case is proceeding in the US District Court for the Southern District of Florida. As stakeholders await judicial review of the settlement, the dynamics of the legal battle remain uncertain, with implications for both FTX investors and the broader cryptocurrency landscape.
