Proposed Settlement: Crypto Users Weigh Dropping Lawsuit Against Sam Bankman-Fried

cryptonews.com:

A group of cryptocurrency users involved in a class-action lawsuit against former FTX CEO Sam  “ SBF ”  Bankman-Fried has recently reached a proposed settlement.

According to  court filings made on April 19 , the plaintiffs, who had sued FTX influencers in 2022, have decided to pursue their case against FTX promoters using information presented during  Bankman-Fried’s  criminal  trial,  rather than continuing to  pursue  judgment against him.

The filing states that Bankman-Fried possesses knowledge and information that the plaintiffs and their counsel believe will be valuable in their cases against other defendants in the FTX multidistrict litigation. 

This information relates to the underlying actions, the connection to the  company’s  U.S. headquarters in Miami, Florida, and the involvement of other defendants in various states where jurisdiction  is asserted .

If approved by the court, the settlement would resolve the lawsuit between Bankman-Fried and the crypto users seeking compensation for losses incurred during the collapse of FTX. 

The proposal suggests that the plaintiffs offered Bankman-Fried the opportunity to assist in prosecuting FTX influencers and aiding victim recovery by providing documents and testimony from his criminal trial. 

Notably, the information could shed light on the involvement of celebrities and companies such as Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille  O’Neal , who endorsed the crypto exchange before its downfall.

The lawsuit was initially filed in November 2022, shortly after FTX filed for bankruptcy, and  was consolidated  into its current form in June 2023.

The Moskowitz Law Firm, known for handling crypto-based class-action lawsuits, represents the plaintiffs in