Investors who were negatively impacted by FTX Derivatives Exchange are considering withdrawing certain accusations against Sam Bankman-Fried, the ex-CEO, but only under specific terms.
Celebrities Implicated In the FTX Case
A band of investors submitted a court settlement proposal in Miami’s federal court on Friday. Their aim is to compel the 32-year-old entrepreneur, under scrutiny, to collaborate with them against other accused parties in a series of lawsuits concerning the demise of FTX exchange. Among these defendants are celebrities, financiers, social media personalities, and others who endorsed FTX, leading investors to suffer significant financial losses totaling billions of dollars.
Celebrities such as Tom Brady, Shaquille O’Neal, Stephen Curry, Naomi Osaka, and Gisele Bundchen may have been involved in a settlement due to allegations that they received payment to endorse FTX before it faced financial difficulties and filed for bankruptcy. Last year, the exchange’s new financial advisors tried to recoup the substantial amounts paid to these celebrities.
In the meantime, Bankman-Fried is obligated to provide all non-confidential records detailing his assets and investment in AI startup Anthropic. Furthermore, he must submit an affidavit declaring a negative net worth and additional documents concerning other defendants involved in the extensive civil lawsuit.
As a response, they consented to withdraw their lawsuits against him. Upon judicial approval, SBF will no longer face civil responsibility for the alleged FTX scandal, which holds significant significance given his recent 25-year prison sentence.
FTX Investors To Receive $1.3M In Settlement
On the other hand, the plaintiffs would bag significant victory if the deal pulled through.
Regarding the situation at hand, it is projected that the compensation for the implicated promoters could amount to approximately $1.3 million. Given the strength of the evidence against these celebrities, escaping this predicament may prove challenging. It has been reported that SBF injected significant resources into FTX endorsements once the crypto exchange encountered difficulties.
Bankman-Fried previously took advantage of the widespread respect and faith people have in prominent figures, including himself. Now, through his lawyer, he is making efforts to make amends for past mistakes.
Part of his amendment plans include reimbursing all who were affected by the implosion.
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2024-04-20 01:05