A group of investors reached a settlement with former FTX CEO Sam Bankman-Fried, agreeing to drop a civil lawsuit against him in exchange for his cooperation in taking legal action against celebrities who promote the platform.
In documents filed in Miami court, investors demanded approval of the deal, citing Bankman-Fried’s valuable knowledge of Shaquille O’Neal, Gisele Bündchen, Tom Brady, Kevin O’Leary and several other defendants.
The agreement outlines Bankman-Fried’s obligations, acknowledges his current incarceration and associated restrictions on his activities. Notwithstanding these limitations, he is expected to use reasonable efforts to cooperate by providing financial statements, non-privileged documents relating to investments in Anthropic PBC, and information regarding the various entities and individuals involved in the case.
FTX has engaged in extensive marketing and advertising efforts, establishing partnerships with celebrities and organizations such as MLB and the NBA’s Miami Heat franchises. However, the stock market crashed in 2022, causing investors to lose $8 billion.
Bankman-Fried was convicted in November on seven counts of defrauding FTX customers, lenders and investors. He was sentenced to 25 years in prison at the hearing last month.
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