Based on a recent Bloomberg article, Sam Bankman-Fried, co-founder of cryptocurrency exchange FTX, has reached an agreement with some of its investors and clients who had filed claims against him to withdraw those claims.
As a counterpart, Bankman-Fried has consented to work with the accusers in their ongoing legal disputes against other defendants concerning the demise of FTX.
Sam Bankman-Fried And Insiders Settle
According to the report, with judicial approval, an agreement could free Bankman-Fried from civil responsibility for claims against him. This possibility arises shortly after he was sentenced to a 25-year prison term for fraud charges involving alleged thefts totaling billions of dollars from FTX.
In the federal court in Miami, the agreement filed by the parties involved in the multi-district lawsuit states that the plaintiffs will handle and settle all existing and forthcoming disputes they have with Bankman-Fried.
In addition to FTX’s ex-insiders, such as Gary Wang, Caroline Ellison, and Nishad Singh, who have testified against Bankman-Fried, investors have filed lawsuits against them. Yet, these individuals have consented to settlements and are currently cooperating with the plaintiffs by supplying relevant information for their case, according to court documents.
Among the remaining defendants are high-profile individuals such as celebrities, athletes, and social media influencers who endorsed FTX to investors and followers.
Under the terms of the resolution, Bankman-Fried has agreed to help the plaintiffs’ legal team in tracking down the remaining FTX endorsers. Moreover, he is obligated to hand over all unprotected documents concerning his personal assets and his involvement with artificial intelligence company Anthropic.
Bankman-Fried will additionally provide an affidavit declaring a negative net worth and disclose related documents concerning the other defendants in the extensive civil lawsuit.
In the combined FTX lawsuits, the roster of defendants is lengthy and includes financiers as well as celebrities like Tom Brady, Shaquille O’Neal, and Gisele Bundchen. They are alleged to have illegally sold securities without registration and enticed investors into a Ponzi scheme.
Bankman-Fried’s accord involves sharing any essential details concerning venture capital companies that funded FTX, as well as the accountants and legal professionals who collaborated with the trading platform.
If they prevail in the lawsuit, the plaintiffs may be entitled to significant compensation, approximately $1.3 million based on the reported settlement values in the court documents.
FTX Scandal Update
Bankman-Fried’s representative, Mark Botnick, shared that his client is committed to making things right following the demise of FTX. Botnick highlighted how Bankman-Fried has dedicated all efforts towards returning the estate’s assets to customers and restoring their funds to their original value since then.
Botnick conveyed Bankman-Fried’s determination to collaborate with Moskowitz and his legal team, acting on behalf of the accusers, toward reaching this objective.
In asking the judge to agree to the settlement, the lawyers for the plaintiffs admitted that taking legal action against Bankman-Fried carried risks and uncertainties. However, they believed that Bankman-Fried’s involvement would be beneficial in handling the rest of the court proceedings.
Bankman-Fried, who was convicted and sentenced to prison last year, is presently held at the Metropolitan Detention Center in Brooklyn, New York. He plans to challenge both his conviction and sentence in appeals court.
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2024-04-25 07:17