FTX investors and customers have decided to drop their claims against former FTX CEO Sam Bankman-Fried in exchange for his help in taking legal action against celebrities who endorsed FTX. This comes after Bankman-Fried was sentenced to 25 years in prison for fraud related to FTX.
As part of the agreement, investors would drop all current and future claims against Bankman-Fried, and in return, he would assist in pursuing legal action against the celebrities, who promoted FTX, resulting in financial losses for investors.
Details of SBF’s Cooperation
Bankman-Fried’s cooperation includes providing nonprivileged documents detailing his assets, investments in companies like Anthropic, and information about other defendants in the civil litigation.
The combined lawsuit, filed in federal court, involves a diverse group of defendants, including celebrities like David Ortiz, Udonis Haslem, Orlando Bloom, Larry David, Katy Perry, Shaquille O’Neal, Gisele Bündchen, and Tom Brady.
Potential Recoveries
The potential outcome of the settlement extends beyond the immediate resolution of claims against Bankman-Fried. If successful, the plaintiffs stand to recover significantly more than the settlements offered by promoters involved in the pact, which total approximately $1.3 million.
One notable aspect of the settlement involves an agreement with Trevor Lawrence, quarterback for the Jacksonville Jaguars, who was recruited as an endorser for FTX in 2021. Lawrence’s involvement underscores the extent to which FTX leveraged celebrity endorsements to solidify its brand visibility.
No, Response!!!
While representatives for some celebrities named in the lawsuit, including Bundchen, O’Neal, and Brady, have yet to respond to requests for comment on the settlement, the outcome of the legal proceedings could have far-reaching implications for both FTX and the individuals involved.
