FTX Co-Lead Counsel Makes Progress in Clawing Back Funds
The co-lead counsel representing bankrupt cryptocurrency exchange FTX is making strides in their efforts to recover funds that were donated to celebrities, influencers, professional athletes, and teams by the management led by Sam Bankman-Fried (SBF) before the exchange’s collapse in November.
Dismissal of BitBoy and Proposed Settlements
In the aftermath of FTX’s downfall, investors of the exchange filed lawsuits against various celebrities, seeking refunds for payments they received from SBF to promote the crypto platform. These sports stars and TV personalities were accused of participating in a fraudulent scheme through FTX, taking advantage of retail investors with limited knowledge of the crypto industry.
Prominent figures such as Shaquille O’Neal, Steph Curry, Naomi Osaka, Tom Brady, and franchises like Miami Heat and Golden State Warriors were named as defendants. YouTube influencers BitBoy, Kevin Paffrath, and Tom Nash were also included.
Recently, FTX’s co-lead counsel dropped BitBoy from the lawsuit as he did not respond to the allegations or seek summary judgment. The counsel also revealed that settlement agreements were reached with NFL quarterback Trevor Lawrence, Paffrath, and Nash to resolve claims of their involvement in deceiving FTX investors.
Settlement Discussions with Additional Defendants
The attorney stated that they are currently engaged in settlement discussions with other FTX defendants who have expressed willingness to participate in mediation once they are dismissed from the lawsuit.
“Co-Lead Counsel are also in settlement discussions with additional FTX Defendants, who have advised that, following a ruling by the Court on the soon-to-be-filed Motions to Dismiss, they will be in a better position to attend mediation, and dates have already been reserved with Judge Michael Hanzman (ret.) to mediate those claims in October and November.”
Given the likelihood of reaching these settlements, the counsel has requested a single hearing to consider the proposed agreements.
Hot Take: FTX Co-Lead Counsel Makes Progress in Recovering Funds from Celebrities and Influencers
The co-lead counsel representing FTX, the bankrupt cryptocurrency exchange, is making significant headway in their efforts to reclaim funds donated to celebrities, influencers, athletes, and teams by the management led by Sam Bankman-Fried. They have voluntarily dismissed crypto influencer BitBoy from the lawsuit and reached settlements with NFL quarterback Trevor Lawrence, Kevin Paffrath, and Tom Nash. Additionally, they are engaged in settlement discussions with other defendants who have expressed interest in mediation after being dismissed from the case. This progress indicates that the counsel is determined to hold individuals accountable for their involvement in promoting FTX’s fraudulent activities.
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