Sam Bankman-Fried Plans To Strike A Deal with FTX Customers
In a recent development, Sam Bankman-Fried, the convicted founder of the collapsed cryptocurrency exchange FTX, has reached a settlement agreement with a group of FTX customers who had filed a class action lawsuit against him.
The agreement was filed in a Miami court on Friday and is yet to be approved by a judge. If approved, the settlement would absolve Bankman-Fried from both current and future civil liability associated with the collapse of FTX.
Key points:
- Sam Bankman-Fried has agreed to provide plaintiffs’ attorneys with information, testimony, and documents to aid in victim recovery.
- The FTX founder also agreed to assist in litigation efforts against celebrity promoters and venture capital firms that endorsed FTX.
- Bankman-Fried will also provide financial information and documents, including his remaining personal assets and his firm’s 2021 investment in AI startup Anthropic.
- The settlement agreement comes shortly after Bankman-Fried’s conviction and 25-year prison sentence for his role in FTX’s implosion.
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As part of the settlement, Bankman-Fried has agreed to provide the plaintiffs’ attorneys with a wealth of information, including both testimony and documents in his possession.
Sam Bankman-Fried’s agreement will aid in fund recovery
The purpose of this information is to facilitate the recovery of funds for FTX’s victims. Additionally, it will support the ongoing litigation against numerous celebrity promoters and venture capital firms that supported the FTX exchange.
Bankman-Fried has also agreed to share financial information and documents, such as a total of his remaining personal assets and his firm’s 2021 investment in AI startup Anthropic.
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The settlement agreement comes after Bankman-Fried’s conviction and sentencing to 25 years in prison for his role in FTX’s collapse.
Interestingly, Bankman-Fried is not the only one to have reached a settlement with the plaintiffs’ attorneys. His former colleagues and co-defendants, including Caroline Ellison, Nishad Singh, Gary Wang, and FTX lawyer Dan Friedberg, have also made similar agreements.
Many of the high-profile celebrity promoters, including athletes Tom Brady, Steph Curry, Shaquille O’Neill, Naomi Osaka, and Shohei Otani, are actively fighting the lawsuit. More than a dozen domestic and international venture capital firms are also contesting the legal action.
