Sam "SBF" Bankman-Fried, the founder of the now-collapsed crypto exchange FTX, has reached an agreement to cooperate with the exchange's investors who had previously sued him.
In exchange for dropping their class-action lawsuit, Bankman-Fried will aid in legal actions against celebrities who promoted FTX.
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The settlement, which absolves SBF from any civil liabilities linked with the downfall of FTX, was submitted to a Miami court last Friday and is currently pending approval.
As part of the agreement, Bankman-Fried will provide the plaintiffs' lawyers with important evidence, including personal financial records, corporate documents, and details of his company’s investment in the AI firm Anthropic.
A group of lesser-known celebrity promoters, including finance YouTubers Andrei Jikh and Graham Stephan, have settled and agreed to contribute to a $1.4 million fund that supports the lawsuit.
In contrast, high-profile celebrities like Shaquille O'Neal, Steph Curry, Tom Brady, and Gisele Bundchen, as well as several venture capital firms, are still challenging the allegations against them.
Several Bankman-Fried's former associates, including Caroline Ellison, Nishad Singh, Gary Wang, and Dan Friedberg, have also entered similar agreements.
The outcome of this lawsuit would not only influence future regulations, but also how celebrities engage in financial endorsements.
This settlement emerges shortly after SBF's conviction for fraud, leading to a 25-year prison sentence due to his involvement in the collapse of FTX. He has since appealed both his sentence and conviction.
