FTX exchange investors are willing to drop their case against Sam Bankman-Fried provided he assists in legal proceedings against celebrities who endorsed the exchange.
The proposed settlement included Bankman-Fried offering significant evidence against Tom Brady, Shaquille O’Neal, and Gisele Bundchen, who are accused of sponsoring a Ponzi scheme.
As per the suggested agreement, Bankman-Fried would provide comprehensive information on FTX’s activities and associated entities, provide relevant investment records, and submit a sworn statement verifying his financial liabilities exceeding his assets.
As a result, all existing and prospective accusations against him would be dropped. The settlement agreement, which is part of a broader consolidation of other cases against FTX promoters, is now awaiting approval from the court in the Southern District of Florida.
The current scenario emphasizes the intricate legal issues that have emerged as a result of the FTX crash and has the potential to affect both celebrities and the wider crypto industry.
Last month, SBF, the ex-CEO of FTX, has received a 25-year jail term for his involvement in the downfall of the crypto exchange.
James Wilson is a crypto writer and researcher with over 5 years of experience in the industry. He is a graduate of the University of California, Berkeley, where he studied computer science and economics. After graduating, he worked as a software engineer at a major tech company before transitioning to a career in crypto.
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