The events surrounding the FTX implosion are far from over. Former executives and promoters of FTX and Alameda Research are filing a class-action lawsuit with former investors in the exchange, seeking damages for fraud.
According to the latest developments, former executives and promoters may face a $1.36 million settlement in the lawsuit.
Former FTX and Alameda executives to cooperate in class action lawsuit
According to a Miami federal court bid On March 27, a number of former FTX and Alameda executives will share information to help resolve the class’s claims against them. Notably, the offer seeks approval of settlement terms in a class action lawsuit.
Those involved in the lawsuit include FTX co-founder Zixiao “Gary” Wang, former chief engineer Nishad Singh and former Alameda CEO Caroline Ellison.
In addition to the former executives, the acquisition also includes settlements with seven influencers, FTX’s former chief regulatory officer, and FTX.US head of compliance Daniel Friedberg.
While the former executives deny all accusations, the collective maintains that the three have “knowledge and other information” to support its claims against the other defendants. These other defendants include venture capitalists, celebrities and corporations.
Settlement Details and Procedures
Ellison, Wang and Singer will be provided All non-privileged documents and data they previously provided to prosecutors in their effort to convict Sam Bankman-Fried. They have already started sharing such details.
In addition, the three executives face prison terms after pleading guilty to alleged fraud. Additionally, the class will demonstrate their cooperation to the court before final sentencing.
The settlement requires the executives to give up assets. This creates room for judges to make decisions regarding the recovery and distribution of victim funds.
Additionally, the settlement expects executives to support FTX investors’ requests for funds to be distributed through a class action lawsuit. This opposes bankruptcy repayment or other lawsuits filed by the exchange.
Friedberg’s reconciliation famous He volunteered to provide valuable information to the class group and promised to continue doing so for as long as necessary.
Furthermore, Friedberg’s settlement agreement shows that he had no prior knowledge of the FTX fraud. However, he immediately resigned from the company after learning about it and promptly reported it to the relevant departments.
Additionally, seven influencers and YouTubers settled as follows: Brian Jung paid $180,000, Kevin Paffrath paid $122,000, Tom Nash paid $37,485, Graham Stephan paid $10,000, and Andrei Jikh and Jeremy LeFebvre paid $5,000 each .
Meanwhile, details of a settlement involving American football star Trevor Lawrence have yet to be released. However, he reportedly paid $1 million based on cumulative disclosed relief, less the amount of certain agreements.
On Thursday, March 28, U.S. District Judge Lewis Kaplan Sentenced FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison. In November last year, a jury found SBF guilty of seven counts of fraud and conspiracy.
While prosecutors recommended a prison sentence of 40 to 50 years, SBF’s lawyers argued for a sentence of less than six and a half years.
