FTX Co-Founder Sam Bankman-Fried’s Civil Liability Released In Settlement With Investors
25 Abril 2024 - 1:00AM
NEWSBTC
According to a recent Bloomberg report, a group of investors and
customers of cryptocurrency exchange FTX have agreed to drop their
claims against co-founder Sam Bankman-Fried. In exchange,
Bankman-Fried has agreed to cooperate with the plaintiffs in the
ongoing lawsuits against other defendants related to the collapse
of FTX. Sam Bankman-Fried And Insiders Settle Per the report,
if approved by a judge, this agreement would release Bankman-Fried
from civil liability just weeks after being sentenced to 25 years
in prison for fraud stemming from allegations of stealing billions
of dollars from FTX. The settlement, filed in federal court
in Miami, stipulates that the plaintiffs in the multi-district
litigation will resolve all current and future claims against
Bankman-Fried. Related Reading: Newbie Bitcoin Whales Hold 2x As
Much As Veterans: What’s Behind This Trend? Other FTX insiders,
including former executives Gary Wang, Caroline Ellison, and Nishad
Singh, who testified against Bankman-Fried, were also sued by
investors. However, they have agreed to settle and have already
started providing information to support the plaintiff’s case, as
stated in the court filing. Notably, this leaves the
high-profile celebrities, sports stars, and social media
influencers who promoted FTX to investors and customers as the
remaining defendants. As part of the settlement agreement,
Bankman-Fried has committed to assisting the plaintiffs’ lawyers in
pursuing the remaining FTX endorsers. Additionally, he will provide
all nonprivileged documents related to his assets and his
investment in artificial intelligence start-up Anthropic.
Bankman-Fried will also submit an affidavit certifying his net
worth as negative and share documents about other defendants
involved in the expansive civil litigation. The list of defendants
in the consolidated FTX lawsuits is extensive, with financiers and
celebrity endorsers such as Tom Brady, Shaquille O’Neal, and Gisele
Bundchen accused of promoting “unregistered securities” and luring
investors into a Ponzi scheme. Bankman-Fried’s agreement
includes providing any relevant information about venture capital
firms that invested in FTX and accountants and lawyers who worked
with the exchange. If successful, the plaintiffs could potentially
win substantial amounts in damages. According to court filings, the
settlements with the promoters involved in the agreement are
estimated to be valued at around $1.3 million. FTX Scandal Update
Bankman-Fried’s spokesperson, Mark Botnick, stated that his client
is determined to make amends. Botnick emphasized that since the
collapse of FTX, Bankman-Fried has focused solely on returning the
estate’s assets to customers and ensuring they are made whole at
current prices. Botnick expressed Bankman-Fried’s commitment
to continue working with Adam Moskowitz and his team, representing
the plaintiffs, to achieve this goal. In their request for the
judge’s approval of the settlement, the plaintiffs’ attorneys
acknowledged the uncertainty and litigation risks associated with
pursuing Bankman-Fried. They concluded that Bankman-Fried’s
cooperation would be “valuable” in the remaining legal proceedings.
Related Reading: Analyst Singles Out VeChain And XRP For Parabolic
Surge, Here Are The Targets Bankman-Fried, who was found guilty at
trial late last year and sentenced in late March, is currently in
custody at the Metropolitan Detention Center in Brooklyn, New York,
before being transferred to the prison where he will serve his
term. He intends to appeal both his sentence and conviction.
Featured image from Reuters, chart from TradingView.com
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