A group of FTX investors and customers has settled a civil lawsuit against Sam Bankman Freed, the disgraced and convicted founder of the failed cryptocurrency exchange.
This time, Mr. Bankman Freed agreed to cooperate with creditors by providing non-privileged documents and information about other defendants. In return, creditors will drop their civil lawsuit against the embattled founder and focus on other parties involved in the exchange's failure.
Sam Bankman Freed criticizes crypto influencers
Creditors intend to use the information shared in a class action lawsuit. Bankman Freed will therefore provide information on exchange celebrity promoters such as Shaquille O'Neal, Tom Brady, Katy Perry and Naomi Osaka.
He also provides insight into FTX's interactions with other parties, including law firm Sullivan and Cromwell, venture capital firm Sino, K5 Global, Multicoin, Deltec Bank, and accounting firm Prager.
Creditors are seeking more details about FTX's involvement with the Golden State Warriors, F1 Racing and Major League Baseball. It also seeks information on companies such as Mercedes-Benz Group Racing Team, Creators Agency, and Lincoln Holdings.
“At the request of the class representative, [Sam Bankman-Fried] Submissions include voluntarily providing documents and information on reasonable notice, to the extent reasonably accessible without service of subpoena, and providing declarations of truth or affidavits upon request. It is assumed that
Read more: FTX collapse explained: How Sam Bankman Freed's empire collapsed
Sunil Kavri, a prominent FTX creditor, said the agreement was a major win for customers. He said FTX liquidators, led by CEO John Ray and the law firm Sullivan & Cromwell, blocked the class action effort.
The Bankman Freed settlement is therefore aimed at unearthing more insights for filing a case against the accomplices involved in the exchange's collapse.
“[The] truth [will] win [and] The co-conspirators will be held accountable,” Kavri said. Added.
Mr. Bankman Freed was convicted and subsequently sentenced to 25 years in prison. The court ruled that he diverted his clients' funds from FTX to his hedge fund, Alameda Research. These funds are said to have been used for political donations, the purchase of luxury real estate, and speculative ventures.
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