FTX former execs and promotors to settle class lawsuit for $1.3M

cyptouser3 months agoCryptocurrencies News71
25cc9d4a>

Former FTX executives and promotors have come to a nearly $1.36 million settlement with a class action group of the crypto exchange’s former investors seeking compensation for being defrauded.

FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh and sister trading firm Alameda Research ex-CEO Caroline Ellison agreed to cooperate and give information to the lawsuit to resolve the claims against them, according to a March 27 Miami federal court bid seeking the settlements’ approval.

Settlements were also reached with seven other influencers and former FTX chief regulatory officer and FTX.US chief compliance officer Daniel Friedberg.

The former execs didn’t admit to any of the lawsuit’s allegations, but the class group found the trio’s “knowledge and other information” would be valuable in strengthening its case against others it sued — including celebrities, companies and venture capitalists.

A highlighted excerpt of Ellison’s settlement notes her testimony against former boyfriend Sam Bankman-Fried could help the suit — the FTX MDL (multidistrict litigation). Source: PACER

Wang, Singh and Ellison will turn over — and have already begun sharing — “all non-privileged documents and/or data” they gave when helping prosecutors lock up their old boss Sam Bankman-Fried for 25 years.

The three each face their own sentences after pleading guilty to fraud. The class will affirm their cooperation with the court before their sentencing.

The former execs will also hand in records used in FTX’s bankruptcy case and make themselves available for depositions and hearings.

The settlement agreement further saw the three agree to forfeit their assets for the judge in their criminal case to decide the recovery and distribution of victim funds.

They are not to oppose a request from FTX investors that the funds be distributed through the class suit, as opposed to FTX’s proposed bankruptcy paybacks or other lawsuits.

A settlement with Friedberg was also reached, with the filings noting he has voluntarily “provided valuable information” to the class group and “has agreed to do so on an ongoing basis.”

Related: Sam Bankman-Fried sentenced to 25 years in prison

Friedberg’s settlement notes he “did not have knowledge of the FTX fraud,” and after he found out about it, he “immediately resigned” and “promptly contacted the authorities.”

Seven YouTubers and influencers also paid to settle the suit, including $180,000 from Brian Jung, $122,000 from Kevin Paffrath, $37,485 from Tom Nash, $10,000 from Graham Stephan, and $5,000 each from Jeremy LeFebvre and Andrei Jikh.

Information for American football star William Trevor Lawrence’s settlement wasn’t available, but he seemingly paid $1 million to settle based on the total disclosed relief minus the other agreements’ sums.

All named in the settlements were released “from all claims related to any of the alleged conduct giving rise to this litigation.”

Deposit risk: What do crypto exchanges really do with your money?

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

European Commission selects Iota Web3 ID for blockchain sandbox

55966e89˃The European Commission announced its selection of Iota’s Web3 Identification solution for...

Arkham Intelligence uncovers nearly all of MicroStrategy's on-chain Bitcoin holdings

Crypto Intelligence firm Arkham Intelligence has reportedly identified on-chain addresses containing...

Galaxy's Novogratz says crypto will get favorable regulation regardless of who wins elections

Galaxy Digital CEO Mike Novogratz has forecasted a favorable regulatory environment for cryptocurren...

New UK law grants authorities power to seize crypto without arrest

The government of the U.K. has approved a bill enhancing law enforcement’s authority to confis...

Virtual reality steps up as metaverse struggles to deliver

Virtual reality steps up as metaverse struggles to deliver

92485d12˃The metaverse has seen significant hype over the last few years, enthralling the minds of e...

UK court rules Craig Wright not Nakamoto, ending long-standing drama

25cc9d4a˃In a landmark ruling in the United Kingdom by Judge James Mellor on March 14, 2024, the cou...