A class-action lawsuit filed in Florida against former FTX CEO Sam “SBF” Bankman-Fried has reached a settlement with a group of cryptocurrency users. The plaintiffs, who initially sued FTX influencers in 2022, have decided to use some of the information presented at Bankman-Fried’s criminal trial to continue their case against FTX promoters. The settlement, subject to court approval, would resolve the lawsuit and provide recourse for crypto users who suffered losses during the fall of FTX.
According to the filing, Bankman-Fried has knowledge and other information that could be valuable to the plaintiffs’ cases against other defendants in the FTX MDL. This includes information about the underlying actions and their connection to Miami, Florida, where FTX’s U.S. headquarters were based, as well as the defendants’ knowledge and assistance with actions in other states.
The plaintiffs proposed the settlement on March 28, the same day Bankman-Fried was sentenced to 25 years in prison for felony charges. As part of the settlement, the plaintiffs requested Bankman-Fried’s assistance in prosecuting FTX influencers and aiding in victim recovery by providing documents and testimony from his criminal trial. This includes information related to celebrities and companies who endorsed FTX before its downfall, such as Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal.
The lawsuit was initially filed in November 2022, shortly after FTX filed for bankruptcy. It was later consolidated into its current form in June 2023. The plaintiffs in the lawsuit are represented by the Moskowitz Law Firm, which has been involved in many crypto-based class-action lawsuits.
Bankman-Fried’s lawyers have filed notice to appeal his conviction and sentence and have requested that he remain at the Metropolitan Detention Center in Brooklyn to assist in his defense.