FTX influencers favored over Sam Bankman-Fried as crypto users consider withdrawing lawsuit

A class-action lawsuit filed in Florida by a group of cryptocurrency users against FTX influencers has reached a settlement with former FTX CEO Sam “SBF” Bankman-Fried. The plaintiffs, in a filing on April 19, acknowledged the cost and duration of the legal proceedings and decided to utilize information from Bankman-Fried’s criminal trial to continue their case against FTX promoters, rather than pursuing judgment against SBF separately. The plaintiffs believed that Bankman-Fried possessed valuable knowledge and information that would support their cases against other defendants in the FTX MDL, specifically regarding the underlying actions and their connection to Miami, Florida, where FTX’s U.S. headquarters were based, as well as the involvement of other states where these defendants are being sued. The proposed settlement, subject to court approval, aims to resolve the lawsuit and provide recourse for crypto users who suffered losses during the downfall of FTX. The settlement was proposed on March 28, the same day Bankman-Fried was sentenced to 25 years in prison for felony charges. The plaintiffs requested Bankman-Fried’s assistance in prosecuting FTX influencers and aiding in victim recovery 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 collapse, including Naomi Osaka, Tom Brady, Stephen Curry, and Shaquille O’Neal. The lawsuit was initially filed in November 2022, following FTX’s bankruptcy filing, and was consolidated into its current form in June 2023. The plaintiffs were represented by the Moskowitz Law Firm, known for handling crypto-related class-action lawsuits. Bankman-Fried’s lawyers have filed notice to appeal his conviction and sentence and have requested that he remain at the Metropolitan Detention Center in Brooklyn to assist in his defense.