Sam Bankman-Fried Offered Settlement In Lawsuit, Will He Snitch?

April 19, 2024 11:25 pm Comments

Former FTX CEO Sam Bankman-Fried has been offered settlement terms in an ongoing investor lawsuit against him.

The $1.3 million lawsuit, first filed by investors in 2022, alleges that FTX used celebrity promotors to push what they described as a Ponzi scheme.

These Litigants are now offering to drop the lawsuit against SBF in exchange for him providing information on FTX’s former celebrity partners and accounting firms tied to those relationships.

Blockchain journalist Colin Wu outlined the celebrities initially named in the lawsuit:

“A group of investors filed a class action lawsuit against FTX and SBF, as well as several celebrities, including Tom Brady, supermodel Gisele Bündchen, tennis star Naomi Osaka, Shaquille O’Neal, Kevin O’Leary, and even the NBA Golden State Warriors.”

Crypto Slate further detailed the terms of the settlement:

To cooperate, Bankman-Fried would need to provide plaintiffs’ lawyers with details about entities related to FTX, including venture capital firms that invested in the exchange and accountants and lawyers that worked with the company during its operations.

He would also provide nonprivileged documents outlining his investments in the AI company Anthropic and an affidavit proving his negative net worth.

In 2023, Morning Brew reported: “Shaq has finally been served in the FTX investor lawsuit after months of hiding. Shaq apparently evaded being served so many times that Moskowitz Law Firm asked the judge to serve him via Twitter and Instagram (that request was denied).”

According to Bloomberg:

Other FTX insiders, including the former executives Gary Wang, Caroline Ellison and Nishad Singh who testified against Bankman-Fried, were also sued by investors, but they too have agreed to settle.

They have already begun handing over information to help the plaintiffs’ case, according to the court filing.

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