Imprisoned FTX founder Sam Bankman Fried has agreed to cooperate against other defendants in the FTX civil lawsuit.
A disgraced former crypto executive is facing a civil lawsuit in southern Florida from a group of plaintiffs seeking to recover losses related to FTX's November 2022 collapse and subsequent bankruptcy.
New documents filed Friday stipulate that Bankman Freed will “reasonably cooperate” with plaintiffs' attorneys to help victims recover from other defendants in the case. It is indicated that a settlement has been reached with the plaintiffs.
Other defendants include celebrities and athletes who supported or collaborated with FTX, including former NFL quarterback Tom Brady, Brady's ex-wife and model Gisele Bündchen, and former NBA basketball player They include player Shaquille O'Neal, current NBA player Stephen Curry, MLB pitcher Shohei Ohtani, and the Sharks. Tank star and investor Kevin O'Leary, current NFL quarterback Trevor Lawrence, and more.
Bankman Freed's settlement requires approval by the U.S. District Court for the Southern District of Florida.
FTX filed an internal complaint in November 2022 following accusations that Bankman Freed lent billions of dollars worth of customer deposits to its trading arm, Alameda Research, and mishandled the exchange's funds. It went bankrupt and filed for bankruptcy.
The exchange's multibillion-dollar collapse led to a plunge in cryptocurrency prices, and U.S. federal authorities arrested Bankman Fried the following month.
Last November, a U.S. jury found FTX's former chief executive officer guilty of wire fraud and conspiracy to commit wire fraud against FTX customers, wire fraud and conspiracy to commit wire fraud against Alameda lenders, and conspiracy to commit securities fraud against FTX investors. , was convicted of conspiracy to commit securities fraud against FTX investors. Conspiracy to commit commodity fraud and money laundering against FTX customers.
On March 28, Judge Louis A. Kaplan sentenced Bankman Fried to 25 years in prison and three years of supervised release. He also ordered the 32-year-old player to pay $11 billion in forfeitures. Bankman Freed is appealing the conviction and sentence.
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