Imprisoned FTX founder Sam Bankman-Fried has agreed to collaborate with other defendants in the FTX civil litigation, according to a recently filed document. Bankman-Fried, who is currently serving time in Southern Florida, has faced civil litigation from various plaintiffs seeking to recover losses from FTX’s collapse and subsequent bankruptcy in November 2022. The settlement specifies that Bankman-Fried will cooperate with the plaintiffs’ lawyers to assist in the recovery efforts against other defendants involved in the case. Notable defendants include celebrities and athletes such as Tom Brady, Gisele Bündchen, Shaquille O’Neal, Stephen Curry, Shohei Ohtani, Kevin O’Leary, and Trevor Lawrence, who either endorsed or worked with FTX. However, Bankman-Fried’s settlement is still pending approval from the District Court for the Southern District of Florida. FTX’s downfall was attributed to Bankman-Fried’s alleged mishandling of customer deposits, leading to the loaning of billions of dollars to Alameda Research. This collapse had a significant impact on the crypto market, resulting in Bankman-Fried’s arrest by US federal authorities the following month. In November, Bankman-Fried was found guilty of several charges, including wire fraud, conspiracy, securities fraud, commodities fraud, and money laundering. He was subsequently sentenced to 25 years in prison and ordered to pay $11 billion in forfeiture. However, Bankman-Fried is currently appealing his conviction and sentence.
