FTX Co-Founder Sam Bankman-Fried Strikes Deal with Investors, Escapes Civil Liability!
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Sam Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, has settled with a group of FTX customers who filed a class-action lawsuit against him. FTX Co-Founder Sam Bankman-Fried Strikes Deal with Investors, Escapes Civil Liability
As per court documents filed in Miami, Bankman-Fried has agreed to assist the plaintiffs’ attorneys in recovering funds from celebrity promoters and venture capital firms associated with FTX. In return, the customers have agreed to drop their civil lawsuit against him.
Settlement Agreement Reached
Under the terms of the settlement agreement, Bankman-Fried has agreed to assist the plaintiffs’ attorneys in their efforts to recover funds from celebrity promoters and venture capital firms that endorsed FTX.
The agreement, which is subject to judicial approval, requires Bankman-Fried to provide testimony, documents, and financial information to support the plaintiffs’ litigation efforts. This includes disclosing details of his assets and FTX’s investments in other ventures, such as the AI startup Anthropic.
If approved, the settlement will release Bankman-Fried from current and future civil liability related to FTX’s collapse.
Bankman-Fried’s cooperation comes amid his conviction for fraud and subsequent sentencing to 25 years in prison. Despite appealing his conviction, he has chosen to collaborate with the plaintiffs’ attorneys to resolve the legal proceedings.
SBF’s Commitment To Cooperation
In a recent statement Bankman-Fried’s spokesperson Mark Botnick, said his client is focused on making things right. Since FTX collapsed, Bankman-Fried has been working hard to give back what’s owed to customers and make sure they’re compensated fairly.
The lawyers representing the customers agreed that it’s tough to go after Bankman-Fried legally. They said his cooperation is really important for the ongoing legal process.
Other FTX Executives Agree for Settlement Too
On the other hand, former FTX executives, including Gary Wang, Caroline Ellison, and Nishad Singh who testified against Bankman-Fried are also seen settling with investors and are providing information to support the plaintiffs’ case.
However, the settlement leaves high-profile celebrities, sports stars, and social media influencers who promoted FTX as the remaining defendants. This group could face legal scrutiny for their roles in endorsing the exchange to investors and customers.
While, Bankman-Fried is currently in custody in New York. He plans to appeal both his conviction and the punishment he got.
