FTX investors prepare to drop claims against Sam Bankman-Fried, the company’s ex-CEO, in exchange for his cooperation.
As reported by Bloomberg on April 19, a proposed settlement suggests Bankman-Fried would assist against celebrity promoters named in a $1.3 million civil lawsuit. Notable defendants in the lawsuit include former ex-NBA player Shaquille O’Neal, NFL quarterback Tom Brady, and supermodel Gisele Bundchen.
Plaintiffs to Withdraw Claims Against FTX Founder
FTX founder and former CEO Sam Bankman-Fried, recently sentenced to 25 years in prison, has struck a deal with a group of investors, according to Bloomberg. The agreement entails dropping all claims against Bankman-Fried if he aids class representatives in bolstering their case against celebrity promoters of FTX.
To fulfill this, Bankman-Fried must divulge confidential details regarding celebrities’ involvement in boosting FTX ratings before its 2022 collapse. He’s also tasked with providing information about entities associated with FTX, including venture capital firms, accountants, and lawyers.
In return for his cooperation, plaintiffs will withdraw current and future claims against him, subject to court approval. The proposal includes several FTX insiders and internet personalities as settling defendants.
Previously, specific celebrity promoters sought dismissal of claims in April 2023, which were later merged into a consolidated case by June 2023. It’s important to note that these civil cases are distinct from the concluded criminal case against Bankman-Fried, who received a 25-year prison sentence in March 2024.