FTX influencers prioritized by crypto users as they consider dropping lawsuit against Sam Bankman-Fried

A class-action lawsuit filed in Florida by a group of cryptocurrency users against FTX influencers has reached a settlement agreement with former FTX CEO, Sam “SBF” Bankman-Fried. The plaintiffs, in a filing on April 19 in the United States District Court for the Southern District of Florida, announced their decision to settle with Bankman-Fried, acknowledging the cost and length of the legal proceedings if they were to continue pursuing judgment against him. Instead, they plan to use information presented during his criminal trial to support their case against other defendants in the FTX MDL (multidistrict litigation).
The settlement, subject to court approval, aims to resolve the lawsuit between Bankman-Fried and the crypto users seeking compensation for their losses during the fall of FTX. The plaintiffs proposed the settlement on March 28, the same day that Bankman-Fried was sentenced to 25 years in prison for felony charges. As part of the settlement, the plaintiffs have requested Bankman-Fried’s assistance in prosecuting FTX influencers and aiding in the recovery of victims by providing documents and testimony from his criminal trial. They specifically mentioned information related to celebrities and companies that endorsed the crypto exchange before its downfall, including Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal.
The lawsuit was originally filed in November 2022, shortly after FTX filed for bankruptcy, and was consolidated into its current form in June 2023. The plaintiffs were represented by the Moskowitz Law Firm, known for handling various class-action lawsuits related to cryptocurrency. Bankman-Fried’s lawyers filed a notice to appeal his conviction and sentence on April 11. They also requested that he remain at the Metropolitan Detention Center in Brooklyn to assist in his defense, rather than being transferred to a federal prison in the San Francisco Bay Area.