Former FTX Executives and Promoters Settle Class Action Lawsuit for $1.36 Million, Agree to Aid in Legal Battle

Former FTX Executives and Promoters Settle Class Action Lawsuit for $1.36 Million, Agree to Aid in Legal Battle

Crypto News – Former executives and promoters associated with FTX, a cryptocurrency exchange, have reached a settlement worth nearly $1.36 million with a class action group comprised of the exchange’s former investors who sought restitution for alleged fraudulent activities.

FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh, and Caroline Ellison, former CEO of Alameda Research, have agreed to cooperate by providing information to the lawsuit in order to address the claims against them. This agreement, outlined in a March 27 filing in a Miami federal court, is pending approval.

Additionally, settlements have been reached with seven other influencers and Daniel Friedberg, the former chief regulatory officer of FTX and chief compliance officer of FTX.US.

While the former executives have not admitted to any of the allegations in the lawsuit, the class action group believes that their insights and information will be instrumental in bolstering the case against other defendants, including celebrities, companies, and venture capitalists.

As part of the settlement, Wang, Singh, and Ellison will disclose all non-privileged documents and data they provided during the prosecution of their former colleague Sam Bankman-Fried. Each of them faces their own sentences after pleading guilty to fraud, with their cooperation with the court being affirmed by the class action group before sentencing.

Furthermore, the former executives will submit records relevant to FTX’s bankruptcy proceedings and make themselves available for depositions and hearings.

In an additional aspect of the settlement agreement, Wang, Singh, and Ellison have consented to forfeit their assets for the judge overseeing their criminal case to determine the recovery and distribution of funds to victims. They have also agreed not to contest FTX investors’ request that these funds be distributed through the class action suit rather than via FTX’s proposed bankruptcy payouts or other legal actions.

A separate settlement was reached with Friedberg, who, according to filings, has willingly provided valuable information to the class action group and has committed to continue doing so. Friedberg asserts that he had no knowledge of the FTX fraud and promptly resigned and contacted authorities upon learning of it.

Furthermore, seven YouTubers and influencers, including Brian Jung, Kevin Paffrath, Tom Nash, Graham Stephan, Jeremy LeFebvre, and Andrei Jikh, have made payments to settle the lawsuit.

Although details regarding the settlement with American football star William Trevor Lawrence are not available, it appears that he settled for approximately $1 million based on the total disclosed relief minus the sums agreed upon in other settlements.

All parties involved in the settlements have been released from any claims related to the alleged conduct underlying the litigation.