FTX investors may drop claims against the company’s co-founder and former CEO in exchange for his support. According to Bloomberg, a proposed settlement would see Sam Bankman-Fried cooperating against celebrity promoters involved in a $1.3 million civil lawsuit.
The civil case lists celebrities such as Tom Brady, Shaquille O’Neal, and Gisele Bundchen as defendants, with plaintiffs alleging that these celebrities lured them into a Ponzi scheme by promoting FTX.
To assist in the case, Bankman-Fried would be required to provide details about entities connected to FTX, including venture capital firms, accountants, and lawyers. He would also need to share nonprivileged documents related to his investments in Anthropic AI and prove his negative net worth with an affidavit.
In return for Bankman-Fried’s cooperation, plaintiffs would agree to drop present and future claims against him. While acknowledging the value of his participation, plaintiffs understand that shifting the focus of the case may impact its outcome, with the judge ultimately needing to approve the proposal.
The ongoing case in the Southern District of Florida consolidates civil lawsuits against various FTX promoters and insiders. Previous defendants, including FTX insiders and internet personalities, have also considered settlements.
Notably, Bankman-Fried’s involvement in a high-profile criminal case concluded in March with a 24-year prison sentence. The recent developments in the civil case highlight the complexity and ongoing legal battles surrounding FTX and its affiliates.
