Dismissal and Settlements in FTX Lawsuit
In the ongoing litigation surrounding the collapse of FTX, crypto influencer Ben “BitBoy” Armstrong has been dismissed from the lawsuit, while three celebrities have chosen to settle the case against them. The court filing states that Armstrong’s claims have been voluntarily dismissed, and his settlement in the related Binance matter will be filed. Armstrong had not responded to the allegations or requested a summary judgment.
High-profile Settlements and Discussions
Quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, have decided to settle the case. However, the terms of their settlements remain undisclosed and are awaiting approval from U.S. Judge K. Michael Moore. The Co-Lead Counsel is also engaged in confidential settlement discussions with other FTX defendants, indicating that more settlements are likely.
Celebrities Named in Filing
Last week’s filing revealed the names and payments made to celebrity athletes such as Shaquille O’Neal, Naomi Osaka, and David Ortiz, as well as organizations like MLB and NBA franchises. Other celebrities sued for promoting FTX include Tom Brady, Gisele Bundchen, and Steph Curry.
FTX Estate’s Recovery Efforts
The FTX estate is attempting to recover funds from various sources but acknowledges uncertainty about the amount it will be able to retrieve from these payments. The estate is also dealing with the upcoming trial of former CEO Sam Bankman-Fried on fraud charges related to his time at FTX.
FTX Updates
FTX recently reopened its creditor claims portal after a security incident. Additionally, a plan allowing the FTX estate to sell off billions in cryptocurrency was approved by Judge John Dorsey.
Hot Take: Celebrities Settle as FTX Lawsuit Unfolds
The dismissal of Ben Armstrong and the settlements reached by Trevor Lawrence, Kevin Paffrath, and Tom Nash indicate progress in the FTX lawsuit. As more celebrities are engaged in confidential settlement discussions, it is likely that further resolutions will be reached. However, the recovery of funds for the FTX estate remains uncertain. With the trial of former CEO Sam Bankman-Fried on the horizon, the case continues to unfold. FTX’s recent reopening of its claims portal and approval to sell off cryptocurrency assets demonstrate ongoing efforts to address the aftermath of its collapse.
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