A collective of cryptocurrency users has come to terms with former FTX CEO Sam “SBF” Bankman-Fried in connection with a class-action lawsuit filed in Florida. As disclosed in an April 19 submission to the U.S. District Court for the Southern District of Florida, plaintiffs involved in the 2022 lawsuit against FTX influencers have announced a settlement with Bankman-Fried. The filing outlines that the plaintiffs recognized the potential costs and time involved in continuing litigation against SBF, opting instead to leverage information from their criminal trial to pursue their case against the FTX promoters.
Bankman-Fried’s knowledge and other pertinent information are deemed valuable by the plaintiffs and their legal representatives for advancing the case against other defendants in the FTX Multidistrict Litigation (MDL). The settlement, contingent upon court approval, aims to resolve the dispute between SBF and cryptocurrency users seeking restitution for losses sustained during the FTX crash. The proposal for settlement was tabled on March 28, coinciding with a judge’s decision to sentence Bankman-Fried to 25 years in prison following his conviction on felony charges.
As part of the proposed settlement, plaintiffs suggest that Bankman-Fried collaborate in the prosecution of FTX influencers and aid victims in recovering losses through information and testimony provided during their criminal trials. Notably, lawyers referenced details concerning celebrities and entities that endorsed the cryptocurrency exchange before its collapse, including sports figures like Naomi Osaka, Tom Brady, Steph Curry, and Shaquille O'Neal. The lawsuit originated in November 2022, following FTX’s bankruptcy filing, and was consolidated into its current iteration in June 2023. Representing the plaintiffs across various cryptocurrency-based class action lawsuits is the Moskowitz Law Firm.
Meanwhile, legal representatives for Bankman-Fried have lodged a notice of appeal on April 11, challenging the former FTX CEO’s conviction and sentence. Additionally, they have requested that SBF remain at the Metropolitan Detention Center in Brooklyn rather than being transferred to a federal prison in the Bay Area to assist in his defense efforts.
