FTX Users Reach Proposed Settlement with Former CEO 🤝
A group of cryptocurrency users who initiated a class-action lawsuit against former FTX CEO Sam “SBF” Bankman-Fried has recently come to a proposed settlement. The plaintiffs, who took legal action against FTX influencers in 2022, have decided to pursue their case against FTX promoters based on information presented during Bankman-Fried’s criminal trial instead of continuing to seek judgment against him.
- The filing states that Bankman-Fried possesses valuable knowledge and information that could aid the plaintiffs in their cases against other defendants involved in the FTX multidistrict litigation.
- This information pertains to the underlying actions, the company’s U.S. headquarters in Miami, Florida, and the roles of other defendants in various states where jurisdiction is claimed.
Plaintiffs Aim to Target FTX Influencers
If the court approves the settlement, it will resolve the lawsuit between Bankman-Fried and the crypto users seeking compensation for losses incurred during the collapse of FTX. The proposal suggests that the plaintiffs have offered Bankman-Fried the opportunity to assist in prosecuting FTX influencers and aiding victim recovery by providing documents and testimony from his criminal trial.
- The information could reveal the involvement of celebrities and companies like Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal, who promoted the crypto exchange before its downfall.
- The lawsuit was originally filed in November 2022, shortly after FTX declared bankruptcy, and was consolidated into its current form in June 2023.
Appeal of Fraud Conviction and Sentence by SBF
Last week, Bankman-Fried filed an appeal against his conviction and sentence for fraud and conspiracy charges. The disgraced crypto executive was convicted last November after a month-long trial on seven counts and received a 25-year federal prison sentence.
- His legal team requested Judge Lewis A. Kaplan to keep Bankman-Fried at the Metropolitan Detention Center in Brooklyn to facilitate access to his appellate counsel as he seeks to overturn his sentence.
- During his sentencing, Bankman-Fried’s lawyers criticized the conditions at the Metropolitan Detention Center, labeling it as the worst federal jail in the country with issues like water shortages and electrical problems.
FTX Users Await Repayments amid Bankruptcy Proceedings
The FTX bankruptcy estate plans to begin repaying customers by the end of 2024, as revealed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas. The bankruptcy involves two separate processes – Chapter 11 bankruptcy overseen by a Delaware court in the US and the official liquidation of FTX Digital, the Bahamas-based subsidiary of FTX.
- Both entities have agreed to collaborate, allowing creditors to submit their claims to either party while ensuring that each creditor receives their entitled value.
Hot Take: Insights into the FTX Legal Battle and Bankman-Fried’s Appeal 🌟
In summary, the ongoing legal battle between FTX users and Sam Bankman-Fried has taken an interesting turn with a proposed settlement and appeals process. The collaboration between plaintiffs and the former FTX CEO provides a unique approach to seeking justice and compensation in the aftermath of the exchange’s collapse.
As the appeals process unfolds, the cryptocurrency community eagerly anticipates the outcomes that could have significant implications for future industry regulations and user protection measures.
Sources:
– Bloomberg
– Legal filings and court documents
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