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FTX Bankman-Fried Strikes Deal to Pursue Celeb Promoters for $1.3M

Published 20/04/2024, 18:47
FTX Bankman-Fried Strikes Deal to Pursue Celeb Promoters for $1.3M

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  • FTX investors dropped claims against SBF for cooperation in pursuing celebrity promoters.
  • SBF will assist in targeting Tom Brady and Shaquille O’Neal, who are accused of promoting FTX.
  • The settlement is valued at $1.3 million and includes disclosing SBF’s assets and involvement in the Anthropic AI startup.

A group of investors and customers has reached a new agreement with the disgraced FTX co-founder Sam Bankman-Fried (SBF) to pursue celebrities and promoters. The deal entails dropping claims against Bankman-Fried in exchange for his cooperation against other defendants involved in the lawsuits of FTX’s downfall.

This settlement, subject to judicial approval, would absolve Bankman-Fried of civil liability. It comes just weeks after he received a 25-year prison sentence for fraud related to the misappropriation of billions of dollars from FTX. As part of the agreement filed in federal court in Miami, plaintiffs in the multi-district litigation have agreed to resolve all claims against him now and in the future.

Other FTX insiders have also agreed to settle and provide information to support the plaintiffs’ case. It includes former executives Gary Wang, Caroline Ellison, and Nishad Singh, who testified against Bankman-Fried. Meanwhile, the focus now shifts to celebrities, sports stars, and social media influencers who promoted FTX to investors and customers.

Bankman-Fried has agreed to assist plaintiffs’ attorneys in pursuing the remaining FTX endorsers. As part of the proposed settlement, SBF will provide all non-privileged documents disclosing his assets and stake in the artificial intelligence startup Anthropic. He will also reveal an affidavit affirming his negative net worth and documents regarding other defendants in the broad civil litigation.

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Notably, the plaintiffs are targeting financiers and celebrity endorsers, including Tom Brady, Shaquille O’Neal, and Gisele Bundchen, for allegedly promoting FTX and enticing investors into what is claimed to be a Ponzi scheme.

The settlements with promoters in this agreement are valued at approximately $1.3 million. Notably, the settlement includes football quarterback Trevor Lawrence, who received $500,000 for endorsing FTX in 2022.

The post FTX Bankman-Fried Strikes Deal to Pursue Celeb Promoters for $1.3M appeared first on Coin Edition.

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