FTX Investors Consider Dropping Claims Against Former CEO in Proposed Settlement
According to Bloomberg, investors in FTX are considering dropping claims against the company’s co-founder and former CEO, Sam Bankman-Fried, in return for his cooperation.
Under the proposed settlement, Bankman-Fried would assist against celebrity promoters named in a $1.3 million civil lawsuit, including former NFL quarterback Tom Brady, former NBA player Shaquille O’Neal, and supermodel Gisele Bundchen.
To cooperate, Bankman-Fried would provide plaintiffs’ lawyers with details about entities related to FTX, such as venture capital firms that invested in the exchange, and accountants and lawyers that worked with the company during its operations. He would also provide nonprivileged documents outlining his investments in the AI company Anthropic and an affidavit proving his negative net worth.
In exchange for Bankman-Fried’s cooperation, plaintiffs would drop current and future claims against him. Plaintiffs acknowledged Bankman-Fried’s participation as “valuable” but recognized that the shift in focus could make their case’s outcome uncertain.
The relevant case, currently proceeding in the Southern District of Florida, brings together several civil lawsuits against various FTX promoters and insiders. Several other defendants previously approached a settlement.
READ MORE: Blackrock Bitcoin ETF Poised to Surpass Grayscale
A March 27 filing named FTX insiders Gary Wang, Caroline Ellison, and Nishad Singh, former FTX lawyer Daniel Friedberg, several internet personalities, and AFL quarterback William Trevor Lawrence as proposed settling defendants. The current status of the proposal is unclear.
Much earlier, in April 2023, some celebrity promoters — including but not limited to Brady and Bundchen — asked the court to dismiss claims. The relevant case, Garrison v. Bankman-Fried et al., became part of the consolidated case by June 2023.
All civil cases are distinct from the high-profile criminal case against Bankman-Fried, which has concluded. Bankman-Fried was convicted on criminal charges in November 2023 and received a 24-year prison sentence in March.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
