A group of cryptocurrency users who are part of a class-action lawsuit against former FTX CEO Sam “SBF” Bankman-Fried have proposed a settlement. The plaintiffs have decided to pursue their case against FTX influencers using information from Bankman-Fried’s criminal trial rather than continuing to target him. The settlement aims to utilize Bankman-Fried’s knowledge and information related to the actions underlying the collapse of FTX, the company’s U.S. headquarters in Miami, Florida, and the involvement of other defendants in various states. If approved by the court, the settlement would resolve the lawsuit between Bankman-Fried and the crypto users seeking compensation for losses incurred during the collapse of FTX.
The lawsuit against former FTX CEO Sam “SBF” Bankman-Fried was initially filed in November 2022 following FTX’s bankruptcy filing. The case was consolidated into its current form in June 2023, with the Moskowitz Law Firm representing the plaintiffs. Bankman-Fried’s legal team filed a notice to appeal his conviction and sentence for fraud and conspiracy charges on April 11. They also requested that Bankman-Fried remain at the Metropolitan Detention Center in Brooklyn to facilitate access to his appellate counsel as he works to overturn his sentence. Bankman-Fried was convicted last November on seven different charges and sentenced to 25 years in federal prison.
The proposed settlement between Bankman-Fried and the cryptocurrency users seeking compensation for losses incurred during the FTX collapse also involves targeting FTX influencers. 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 provided by Bankman-Fried could shed light on the involvement of celebrities and companies such as Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal, who endorsed the crypto exchange before its downfall. The settlement aims to use Bankman-Fried’s knowledge and information to help build cases against other defendants in the FTX multidistrict litigation.
Bankman-Fried’s appeal of his conviction and sentence has sparked additional legal proceedings as he seeks to overturn the fraud and conspiracy charges brought against him. During his sentencing, Bankman-Fried’s lawyers referred to the Metropolitan Detention Center in Brooklyn as the worst federal jail in the country and requested that he remain there to assist in his defense. The FTX bankruptcy estate has set a target of initiating repayments to customers by the end of 2024, as disclosed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas. The FTX bankruptcy involves two distinct processes, with both entities agreeing to collaborate to ensure that creditors receive their entitled value.
Overall, the proposed settlement between former FTX CEO Sam “SBF” Bankman-Fried and cryptocurrency users seeking compensation for losses incurred during the collapse of FTX aims to utilize Bankman-Fried’s knowledge and information to build cases against FTX influencers and aid victim recovery. Despite Bankman-Fried’s appeal of his conviction and sentence for fraud and conspiracy charges, legal proceedings continue as he seeks to overturn the charges brought against him. The FTX bankruptcy estate has outlined a plan to initiate repayments to customers by the end of 2024, involving collaboration between the Chapter 11 bankruptcy overseen by a Delaware court and the official liquidation of FTX Digital in the Bahamas to ensure creditors receive their entitled value.
