Cryptocurrency Users Agree to Settlement with Ex-FTX CEO in Class Action Lawsuit
Summary:
A group of cryptocurrency users involved in a class action lawsuit against FTX influencers has agreed to a settlement with the company's former CEO, Sam "SBF" Bankman-Fried. The plaintiffs are employing information from Bankman-Fried's criminal trial to support their case against FTX promoters. The settlement will resolve the dispute relating to losses incurred during FTX's downfall. The case highlights the involvement of celebrities who endorsed the crypto exchange pre-collapse. Bankman-Fried's legal team intend to appeal his 25-year sentence and conviction.
In the recent development of a class action lawsuit filed in Florida, a community of cryptocurrency users has reached a settlement with Sam "SBF" Bankman-Fried, former CEO of FTX. The plaintiffs, who lodged a suit against FTX influencers in 2022, declared an agreement had been achieved with Bankman-Fried in a U.S. District Court for the Southern District of Florida filing on April 19. Noting the cost and drawn-out nature of the proceedings, the plaintiffs decided to leverage some information disclosed at his criminal trial to further their case against FTX promoters, rather than continue to seek judgement against SBF. They believe, as stated in the filing, that information and insights Bankman-Fried possesses will benefit the lawsuit against other FTX MDL defendants, particularly concerning actions tied to Miami, Florida—where FTX's U.S. headquarters were once located—and other states attempting to assert jurisdiction over the defendants.
The settlement, pending court approval, would conclude the dispute between SBF and cryptocurrency users looking for compensation for losses sustained in the FTX collapse. The filing implies that the plaintiffs put forward the settlement on March 28, the same day a judge sentenced Bankman-Fried to 25 years incarceration after he was convicted of felony charges.
The plaintiffs suggested that Bankman-Fried contribute to the prosecution of FTX influencers and also to restitution efforts for victims, using documents and testimonies from his criminal trial. Their attorneys made specific mention of evidence concerning personalities and enterprises who endorsed the cryptocurrency exchange prior to its crash, such as athletes Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal.
The lawsuit was initially lodged in November 2022, shortly after FTX declared bankruptcy; it was later restructured in its current form in June 2023. The Moskowitz Law Firm, well-known for their involvement in various cryptocurrency-related class action lawsuits, represented the plaintiffs.
Bankman-Fried's attorneys disclosed their intent to appeal his sentence and conviction on April 11. They also suggested that SBF stay at the Metropolitan Detention Centre in Brooklyn, as opposed to a federal prison in the San Francisco Bay Area, to facilitate his defense proceedings.
Published At
4/20/2024 12:53:48 AM
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