FTX investors could drop claims against Sam Bankman Fried, the company’s co-founder and former CEO, in exchange for support for him.
Bloomberg reported on April 19 that under the proposed settlement, Bankman Freed would cooperate with celebrity promoters named as defendants in a $1.3 million civil lawsuit.
The civil suit currently names several celebrities as defendants, including former NFL quarterback Tom Brady, former NBA player Shaquille O’Neal, and supermodel Gisele Bündchen.
Plaintiffs allege that celebrities brought them into the Ponzi scheme by promoting FTX.
SBF provides information
To cooperate, Bankman Freed will provide plaintiffs’ lawyers with details about entities associated with FTX, including venture capital firms that invested in the exchange and accountants and lawyers who worked with the company during its operations. There is a need.
He also planned to submit non-privileged documents outlining his investment in the AI company Anthropic and an affidavit proving his negative net worth.
In exchange for Mr. Bankman Freed’s cooperation, the plaintiffs will dismiss current and future claims against him. Bloomberg said the plaintiffs found Bankman Freed’s participation “valuable,” but recognized that the change in focus could make the outcome of the case uncertain.
A judge must decide whether to approve the proposal.
past developments
A related lawsuit currently underway in the Southern District of Florida brings together multiple civil lawsuits against various FTX promoters and insiders.
Several other defendants had also previously approached settlements. The March 27 filing names FTX insiders Gary Wang, Caroline Ellison, Nishad Singh, former FTX lawyer Daniel Friedberg, several Internet celebrities, and AFL quarterback William.・Trevor Lawrence was named as a defendant in the settlement. The current status of the proposal is unknown.
Much earlier, in April 2023, some celebrity promoters — Including but not limited to Brady and Bundchen — asked the court to dismiss the claim. A related case, Garrison v. Bankman Freed et al., became part of a consolidated case by June 2023.
All of the civil cases are different from the high-profile criminal case against Bankman Fried that has concluded. Bankman Freed was convicted of the criminal charges in November 2023 and sentenced to 24 years in prison in March.
