tl;dr
Sam Bankman-Fried, the convicted founder of the failed crypto exchange, has settled a civil case with FTX investors and customers. In the agreement, he agreed to cooperate with creditors by providing non-privileged documents and information on other defendants. This cooperation led the creditors to ...
Sam Bankman-Fried, the convicted founder of the failed crypto exchange, has settled a civil case with FTX investors and customers. In the agreement, he agreed to cooperate with creditors by providing non-privileged documents and information on other defendants. This cooperation led the creditors to drop their civil action against Bankman-Fried and shift their focus to other implicated parties in the exchange's failure. Bankman-Fried will provide information on celebrity promoters, FTX interactions with other entities, and firms associated with FTX, which the creditors intend to leverage in their class action lawsuits.
A cohort of FTX investors and customers have settled their civil case against Sam Bankman-Fried, the disgraced and convicted founder of the failed crypto exchange. Now, Bankman-Fried agreed to cooperate with the creditors by providing non-privileged documents and information concerning other defendants. In return, the creditors will drop their civil action against the embattled founder and focus on other implicated parties in the exchange’s failure.
SAM BANKMAN-FRIED CALLED OUT CRYPTO INFLUENCERS The creditors intend to leverage the shared information in their class action lawsuits. So, Bankman-Fried will provide information on the exchange celebrity promoters, including Shaquille O’Neil, Tom Brady, Katy Perry, and Naomi Osaka. He will also give insights into FTX interactions with other entities, such as the legal firm Sullivan and Cromwell, venture capital firms Sino, K5 Global, Multicoin, Deltec Bank, and accounting firm Prager. Creditors seek additional details on FTX’s engagements with the Golden State Warriors, Formula 1 Racing, and Major League Baseball. Moreover, they want information on firms such as the Mercedes Benz Group Racing Team, Creators Agency, and Lincoln Holdings.
“Upon request by Class Representatives, 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.
Sunil Kavuri, a prominent FTX creditor, described the agreement as a major win for customers. According to him, FTX liquidators, spearheaded by CEO John Ray and the legal firm Sullivan & Cromwell, have impeded the class action endeavors. Consequently, the settlement with Bankman-Fried aims to unearth more insights to litigate against any accomplices involved in the exchange’s collapse.
“ truth prevail co-conspirators will be held accountable,” Kavuri added.
Bankman-Fried was convicted and subsequently sentenced to 25 years in prison. The court ruled that he diverted customer funds from FTX to its affiliated hedge fund, Alameda Research. These funds were allegedly used for political contributions, high-end real estate purchases, and speculative ventures.
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