Jailed FTX founder Sam Bankman-Fried has agreed to cooperate against other defendants in civil lawsuits over the FTX.
The disgraced former crypto executive has faced civil lawsuits in South Florida against a patchwork of plaintiffs seeking to recover losses tied to FTX’s collapse and subsequent bankruptcy in November 2022.
A new document filed Friday shows that Bankman-Fried has reached a settlement with the plaintiffs, stipulating that he will “reasonably cooperate” with the plaintiffs’ attorneys to assist in the recovery of other defendants’ victims in the business.
Other defendants include celebrities and athletes who have supported or worked with FTX, including retired NFL quarterback Tom Brady, Brady’s ex-wife and model Gisele Bündchen, retired NBA basketball player Shaquille O’Neal, active NBA player Stephen Curry, MLB pitcher Shohei Ohtani, Shark Includes tanker and investor Kevin O’Leary and active NFL quarterback Trevor Lawrence.
The Bankman-Fried settlement must still be approved by the U.S. District Court for the Southern District of Florida.
FTX imploded and filed for bankruptcy in November 2022 amid allegations that Bankman-Fried mishandled the exchange’s funds by lending billions of dollars in customer deposits to Alameda Research, the company’s trading arm.
The multi-billion dollar stock market collapse led to a sharp drop in crypto prices, and US federal authorities arrested Bankman-Fried the following month.
Last November, a U.S. jury found the former CEO of FTX guilty of bank fraud and conspiracy to commit bank fraud against FTX’s customers, bank fraud and conspiracy to commit bank fraud against Alameda’s lenders, conspiracy to commit securities fraud against FTX investors, conspiracy to commit fraud commodity fraud against customers of FTX and conspiracy to commit money laundering.
On March 28, Judge Lewis A. Kaplan sentenced Bankman-Fried to 25 years in prison and three years of supervised release. He also ordered the 32-year-old to pay an $11 billion forfeiture. Bankman-Fried is appealing his conviction and sentence.
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