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Sam Bankman-Fried Strikes a Lawsuit Drop Deal With FTX Users - Influencers Targeted Instead

Reaching a settlement with Sam Bankman-Fried

A proposed legal settlement could shift the focus from Sam Bankman-Fried to FTX influencers in a significant crypto class-action lawsuit.

Key takeaways:

  • Cryptocurrency users might drop a lawsuit against Sam Bankman-Fried to target FTX promoters.
  • The settlement aims to utilize Bankman-Fried's trial information to strengthen the case against FTX influencers.

In a recent development filed on April 19 in the United States District Court for the Southern District of Florida, a group of cryptocurrency users involved in a class-action lawsuit have proposed a settlement with former FTX CEO Sam Bankman-Fried, known as "SBF". The plaintiffs, who initially sued FTX influencers in 2022, aim to conclude their litigation against SBF following his recent 25-year prison sentence for felony charges on March 28.

The court filing revealed: 

“[Bankman-Fried] has knowledge and other information that Class Representatives and Class Counsel believe will be valuable to Class Representatives’ cases against other defendants in the FTX MDL [multidistrict litigation], particularly relating to the underlying actions and their connection to Miami, Florida, where FTX’s U.S. headquarters were based, as well as each MDL Defendants’ knowledge of and assistance with the actions and connections to other states in which jurisdictions over those Defendants is asserted.”

This proposed settlement, still pending court approval, would effectively end the lawsuit between SBF and the crypto users, redirecting their legal efforts towards other involved parties.

Shifting focus to FTX influencers

The plaintiffs have indicated their intention to use the information from Bankman-Fried's criminal trial to pursue their case against various FTX promoters. This strategic shift focuses on leveraging documents and testimonies from the trial, particularly those concerning endorsements by celebrities like Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal.

The Moskowitz Law Firm, representing the plaintiffs and known for handling numerous crypto-related class-action lawsuits, supports this shift. They argue that focusing on the role of influencers in promoting FTX can aid in victim recovery and provide a clearer path to compensation for those affected by the exchange’s collapse.

As the legal proceedings continue to unfold, Bankman-Fried's lawyers have filed an appeal against his conviction and sentence, requesting that he remain in the Metropolitan Detention Center in Brooklyn to facilitate his ongoing defense.