Key Takeaways
Sam Bankman-Fried has agreed to assist FTX investors, who will drop their lawsuit in return for his help against celebrity promoters of FTX;
The settlement will clear Bankman-Fried of all civil liabilities linked to FTX’s downfall;
High-profile celebrities, including Shaquille O’Neal, Steph Curry, Tom Brady, and Gisele Bundchen, continue to fight allegations.
Sam “SBF” Bankman-Fried, the founder of the now-collapsed crypto exchange FTX, has reached an agreement to cooperate with the exchange’s investors who had previously sued him.
In exchange for dropping their class-action lawsuit, Bankman-Fried will aid in legal actions against celebrities who promoted FTX.
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The settlement, which absolves SBF from any civil liabilities linked with the downfall of FTX, was submitted to a Miami court last Friday and is currently pending approval.
As part of the agreement, Bankman-Fried will provide the plaintiffs’ lawyers with important evidence, including personal financial records, corporate documents, and details of his company’s investment in the AI firm Anthropic.
A group of lesser-known celebrity promoters, including finance YouTubers Andrei Jikh and Graham Stephan, have settled and agreed to contribute to a $1.4 million fund that supports the lawsuit.
In contrast, high-profile celebrities like Shaquille O’Neal, Steph Curry, Tom Brady, and Gisele Bundchen, as well as several venture capital firms, are still challenging the allegations against them.
Several Bankman-Fried’s former associates, including Caroline Ellison, Nishad Singh, Gary Wang, and Dan Friedberg, have also entered similar agreements.
The outcome of this lawsuit would not only influence future regulations, but also how celebrities engage in financial endorsements.
This settlement emerges shortly after SBF’s conviction for fraud, leading to a 25-year prison sentence due to his involvement in the collapse of FTX. He has since appealed both his sentence and conviction.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
