FTX investors are considering dropping their civil lawsuit against Sam Bankman-Fried, co-founder and former CEO of the company, in exchange for his cooperation in the case. According to reports, Bankman-Fried would need to provide important information about celebrities named as defendants in the $1.3 million lawsuit, including Tom Brady, Shaquille O’Neal, and Gisele Bundchen, who allegedly promoted FTX and led investors into a Ponzi scheme.
In return for his support, Bankman-Fried would reveal details about FTX-related entities, venture capital firms that invested in the exchange, and his investments in the AI company Anthropic. Additionally, he would need to provide documents verifying his negative net worth. This cooperation would lead to the dismissal of current and future claims against him by the plaintiffs in the case.
While this potential settlement could change the course of the lawsuit, the judge still needs to approve the proposed agreement. It comes as several other defendants in the case have also approached settlements, indicating a shift in the legal proceedings surrounding FTX and its promoters.
The civil lawsuit against Bankman-Fried and others is distinct from the criminal case that concluded earlier, where he was convicted and received a 24-year prison sentence. As the legal battles continue, the outcome of this proposed settlement could significantly impact the future of the case and the individuals involved.
