Settlement Reached with Sam Bankman-Fried in FTX Civil Case
A group of FTX investors and customers have successfully settled their civil lawsuit against Sam Bankman-Fried, the founder of the now-defunct crypto exchange. Bankman-Fried has agreed to cooperate with creditors by providing information and documents related to other defendants in the case. In exchange, the creditors will drop their lawsuit against him and focus on other parties involved in the exchange’s collapse.
Bankman-Fried’s Cooperation in Class Action Lawsuits 🤝
- Creditors plan to use the shared information in class action lawsuits against other implicated parties.
- Bankman-Fried will provide details about celebrity promoters of the exchange, including Shaquille O’Neil, Tom Brady, Katy Perry, and Naomi Osaka.
- He will also share insights into FTX’s interactions with entities like Sullivan and Cromwell, Sino, K5 Global, Multicoin, Deltec Bank, and Prager.
Additional Information Sought by Creditors 🕵️♂️
- Creditors are interested in FTX’s engagements with the Golden State Warriors, Formula 1 Racing, and Major League Baseball.
- They also seek information on firms like the Mercedes Benz Group Racing Team, Creators Agency, and Lincoln Holdings.
“Upon request by Class Representatives, [Sam Bankman-Fried] shall voluntarily provide documents and information, to the extent such documents and information are reasonably accessible to him without service of a subpoena, upon reasonable notice, and provide truthful declarations or affidavits upon request,” the filing read.
Celebration of the Agreement 🎉
- Sunil Kavuri, a prominent FTX creditor, hailed the agreement as a significant victory for customers.
- He highlighted the obstacles faced by FTX liquidators and the legal firm Sullivan & Cromwell in pursuing the class action efforts.
- The settlement with Bankman-Fried is expected to provide valuable insights for legal action against others involved in the exchange’s failure.
“[The] truth [will] prevail [and] co-conspirators will be held accountable,” Kavuri added.
Bankman-Fried’s Legal Troubles ⚖️
Bankman-Fried was convicted and sentenced to 25 years in prison for diverting customer funds from FTX to an affiliated hedge fund, Alameda Research. These funds were allegedly used for political contributions, real estate acquisitions, and speculative investments.
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