Bankman-Fried to Assist in Pursuit of FTX Promoters

Sentenced to 25 years in prison, FTX founder Sam Bankman-Fried (SBF) has signed a settlement agreement with a group of the exchange’s clients to aid in the pursuit of the company’s celebrity promoters.

In return, the affected investors will withdraw their class-action lawsuit against SBF.

The document has yet to be approved by the court. If sanctioned, the settlement will release Bankman-Fried from both current and future civil liabilities related to the collapse of FTX.

The essence of the deal is that the former CEO of FTX will provide plaintiffs’ lawyers with information, including documents and testimonies, to support claims against the celebrities and venture firms promoting the exchange.

SBF has also agreed to hand over financial data, including personal balances of his remaining assets and a list of investment deals.

Former colleagues of Bankman-Fried — Caroline Ellison, Nishad Singh, Gary Wang, and Dan Friedberg — have already signed similar settlement agreements.

Several celebrities affiliated with the case, including Andrei Jikh, Graham Stephan, Jaspreet Singh, Tom Nash, Brian Jung, and Jeremy Lefebvre, have settled claims by contributing a total of $1.4 million to a fund for financing future FTX-related lawsuits.

However, most well-known influencers like Tom Brady, Stephen Curry, Shaquille O’Neal, Naomi Osaka, Shohei Ohtani, and supermodel Gisele Bündchen intend to defend their innocence in court.

In November 2023, during a live broadcast of a NBA game, O’Neal was served with a court summons for promoting FTX. Previously, the basketball player had received a notice regarding the exchange’s case, but his lawyers contested the complaint.

Back in April 2024, SBF’s lawyers filed an appeal against the court’s verdict. He intends to contest all seven counts of money laundering, fraud, and conspiracy.