FTX Investors Wants SBF To Help Go After Celebrity Promoters: Report

Affected investors of FTX Derivatives Exchange have moved to drop some of the claims levied against Sam Bankman-Fried, the former CEO of the trading platform, a move that has a condition attached to it. 

Celebrities Implicated In the FTX Case

This group of investors filed a settlement on Friday in a federal court in Miami, requesting that the 32-year-old embattled entrepreneur cooperate with them against other defendants in a sprawling set of lawsuits over the FTX exchange’s collapse. These other defendants include celebrities, financiers, social media influencers, and others who promoted FTX, causing the investors to lose billions of dollars. 

Sports stars Tom Brady, Shaquille O’Neal, Stephen Curry, and Naomi Osaka and model Gisele Bundchen would likely be implicated in this settlement. These celebrities were accused of getting paid to endorse the exchange before it imploded and filed for bankruptcy. As of last year, FTX’s new set of financial advisors attempted to recover the millions paid to them.

Meanwhile, Bankman-Fried is required to tender all non-privileged documents that contain details of his assets and his investment in Artificial Intelligence (AI) intelligence start-up Anthropic. Additionally, he would need to submit an affidavit certifying his net worth as negative, as well as other documents about other defendants in the wide-ranging civil litigation. 

In return, they agreed to drop their claims against him. Once this deal is approved by a judge, SBF will be free from civil liability. For someone who was sentenced to 25 years imprisonment a few weeks ago for being the mastermind behind the FTX collapse, this deal could mean a lot. 

FTX Investors To Receive $1.3M In Settlement

On the other hand, the plaintiffs would bag significant victory if the deal pulled through.

For context, the potential settlement with these implicated promoters is estimated to reach about $1.3 million. Considering the tangibility of evidence against these celebrities, it might be difficult for them to find their way out of the dilemma. SBF allegedly pumped a lot of funds into FTX endorsement as soon as the crypto exchange hit a roadblock.

He exploited the fact that many people look up to these high-profile entities and trust their judgment. Currently, Bankman-Fried is trying to right his wrongs, according to his legal representative. 

Part of his amendment plans include reimbursing all who were affected by the implosion.