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Sam Bankman-Fried To Help Target Celebrity Promoters In Settlement Deal

Published 22/04/2024, 19:03
© Reuters.  Sam Bankman-Fried To Help Target Celebrity Promoters In Settlement Deal

Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Sam Bankman-Fried, the disgraced founder of collapsed crypto exchange FTX, has reached a tentative agreement with a group of defrauded customers.

What Happened: This agreement, pending judicial approval, stipulates that the plaintiffs will withdraw their class action lawsuit against Bankman-Fried, who in return will aid their ongoing legal actions against various celebrity endorsers of the now-defunct cryptocurrency exchange, Coindesk reported.

The settlement, filed last Friday in a Miami court, could absolve Bankman-Fried of both current and potential future civil liabilities related to the downfall of FTX.

According to the documents, Bankman-Fried’s cooperation would involve sharing critical information, including personal financial details and documents from his dealings and his company's investment in the AI startup Anthropic in 2021.

This pivotal agreement arrives after Bankman-Fried was convicted on fraud charges and sentenced to 25 years in prison, a verdict he is currently appealing.

As part of his commitment to the settlement, Bankman-Fried will provide testimony and several documents that could bolster the plaintiffs’ cases against prominent figures and venture capital firms who once promoted FTX.

Also Read: Bitcoin ‘FOMO’ To Push Prices To A ‘Different Level’: Mark Yusko

“Bankman-Fried's cooperation is integral to our efforts to aid victim recovery and pursue those at the helm of promoting FTX,” stated the plaintiffs’ legal team.

This includes pursuing legal action against high-profile celebrities and athletes such as Tom Brady, Steph Curry, and Gisele Bundchen, all of whom have opted to contest the allegations.

In a similar vein, smaller-scale promoters like finance YouTubers Andrei Jikh and Graham Stephan, along with others, have already settled by contributing to a $1.4 million fund designed to finance the lawsuit.

Last year, Jacksonville Jaguars quarterback Trevor Lawrence also settled with the plaintiffs after receiving $500,000 for endorsing FTX's subsidiary Blockfolio in 2022.

The proceedings continue to involve numerous domestic and international venture capital firms, maintaining the complex legal landscape surrounding the FTX saga.

What’s Next: As the legal situation unfolds, discussions at Benzinga’s upcoming Future of Digital Assets event on November 19 will likely address the broader implications of the FTX collapse on celebrity endorsements and investor protections within the cryptocurrency industry.

Read Next: Bitcoin’s Next Move After The Halving? Technical Analysis Foresees These 2 Scenarios

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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