Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: ABCbits on April 21, 2024, 01:18:25 PM
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FTX investors agree to drop civil lawsuit against SBF if he snitches on celebrity promoters
FTX investors may drop claims against the company’s co-founder and former CEO, Sam Bankman-Fried, in return for his support.
Bloomberg reported on April 19 (https://www.bnnbloomberg.ca/ftx-investors-settle-with-sam-bankman-fried-to-pursue-promoters-1.2061522) that, under a proposed settlement, Bankman-Fried would cooperate against celebrity promoters named as defendants in a $1.3 million civil lawsuit... Read more here (https://cryptoslate.com/ftx-investors-agree-to-drop-civil-lawsuit-against-sbf-if-he-snitches-on-celebrity-promoters/).
Honestly i don't understand how much SBF can help here, when those celebrity did promote FTX publicly and it shouldn't be that hard to find proof of what they did. And $1.3 million sounds small compared with few billion USD he needs to return (along with the fines). Your opinion is greatly appreciated.
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At first glance, it seems to me that those who are suing FTX (Bankman) think they can get a lot more if Bankman would provide some kind of evidence with the help of which they would directly sue the promoters. Maybe they think it's an easy way to get some kind of compensation considering the names that are mentioned (Tom Brady, former NBA player Shaquille O'Neal, and supermodel Gisele Bundchen).
I don't know how rich they all are, but I know that they have a lot of money that some people obviously think belongs to them.
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It looks like they are mad that they have invested in something that their celebrity endorsed. It is all because of the facade that SBF has given and showed that it is legitimate but behind the scenes, it's being misused. Well, they might not have done their DYOR but it's more on SBF rather than celebrities IMO.
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Honestly i don't understand how much SBF can help here, when those celebrity did promote FTX publicly and it shouldn't be that hard to find proof of what they did. And $1.3 million sounds small compared with few billion USD he needs to return (along with the fines).
It's some of the investors in FTX, basically they know in a reimbursement plan they will be the last on the line, first is the IRS taking their share, then the victims, and then there is nothing, so why now drop some claims and try to get money some other way.
Bankman-Fried would hand over all nonprivileged documents detailing his assets and his investment in artificial intelligence start-up Anthropic, an affidavit certifying his net worth as negative, and documents about other defendants in the wide-ranging civil litigation.
They are after all the documents that haven't made it to the trial, if there is anything in there valuable it's still better than zero, plus some of those promotes, since they are also pretty rich might be willing to reach a settlement too instead of being dragged to court and lose way more in sponsorships that would avoid them. It's not that strange of a tactic, creditors that have no chance of getting a penny will try to market everything.
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In a significant turn of events, former FTX CEO Sam Bankman-Fried has agreed to a settlement with investors, providing crucial cooperation in ongoing lawsuits against high-profile celebrities. The settlement, pending court approval, could mark a pivotal moment in the extensive legal battles following the crypto exchange’s colossal collapse.
Details (https://news.bitcoin.com/ftx-founder-bankman-fried-agrees-to-settlement-aids-legal-action-against-celebrities/)
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What will the FTX investors benefit from and what SBF will benefit if he agrees to implement this deal?
Of course, FTX investors will recover some of their stolen money as compensation from these celebrities who promoted FTX in the past, but what will SBF benefit? Can this reduce a few years of prison years in which he was sentenced?
If this is true, there will be many people who are not happy with this decision.
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The creditors are trying to get money out of this in anyway they can, i don't know what sbf stands to lose again if they continue with the civil lawsuit against him, but getting money from these celebrity promoters seems like a more juicy proposition for these creditors. I don't know the kind of promotion these celebrities did for ftx and if it can make them culpable, but they may likely want to settle out of court and pay big money for that, so these creditors can get some money from it.
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They know that the SBF is bankrupt and that the procedures for obtaining the money may take dozens of years. Therefore, if they obtain evidence, they can reach quick settlements from these celebrities, which may reach a value of more than $1.3 million, especially since these celebrities care about their reputation and will prefer quick settlements.
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Of course, FTX investors will recover some of their stolen money as compensation from these celebrities who promoted FTX in the past, but what will SBF benefit? Can this reduce a few years of prison years in which he was sentenced?
A lot focused on the prison term and ignored the $11 billion in forfeiture he was ordered to pay, and this is where it gets interesting.
Besides the fraud, there are other claims as well as a civil lawsuit, that's not SBF against the DoJ, this is him against his investors, anyone who has made a loss could have joined a separate claim. Any sentence in a civil suit will not influence the prior 25 years sentence nor the sum locked in forfeiture but any monetary claim will have no priority.
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Bankman-Fried would hand over all nonprivileged documents detailing his assets and his investment in artificial intelligence start-up Anthropic, an affidavit certifying his net worth as negative, and documents about other defendants in the wide-ranging civil litigation.
They are after all the documents that haven't made it to the trial, if there is anything in there valuable it's still better than zero, plus some of those promotes, since they are also pretty rich might be willing to reach a settlement too instead of being dragged to court and lose way more in sponsorships that would avoid them. It's not that strange of a tactic, creditors that have no chance of getting a penny will try to market everything.
I see, i initially thought nonprivileged documents means documents that is publicly available. And it also makes sense they're hoping those celebrity give up quickly and get some compensation.
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The whole idea is pretty silly.
All rich celebrities have teams behind them, including lawyers. The contract certainly protects them from these and similar responsibilities. At the same time, some people want to get publicity, even negative, so this will only benefit them.
Mercedes 2022 f1 car also carried an FTX ad, why are they excluded from this idea?
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FTX investors agree to drop civil lawsuit against SBF if he snitches on celebrity promoters
FTX investors may drop claims against the company’s co-founder and former CEO, Sam Bankman-Fried, in return for his support.
What else could they have resulted on than making a decision to finalized the case to be dropped down, after all, does it even guarantee that they will all gain back their lost asset after several years, how many of them were still interested in follow up after the case when many would have moved on with life, others should learn from this that using a centralized exchange could be as this worst or even more.
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The whole idea is pretty silly.
All rich celebrities have teams behind them, including lawyers. The contract certainly protects them from these and similar responsibilities. At the same time, some people want to get publicity, even negative, so this will only benefit them.
That's true, but those investor probably only care whether they can recoup some of their losses.
Mercedes 2022 f1 car also carried an FTX ad, why are they excluded from this idea?
If you did quick google search, there are news which state those company also face lawsuit. Here are few example,
https://www.gpfans.com/en/f1-news/1008813/f1-mercedes-ftx-lawsuit-cryptocurrency-promotion/ (https://www.gpfans.com/en/f1-news/1008813/f1-mercedes-ftx-lawsuit-cryptocurrency-promotion/)
https://www.telegraph.co.uk/business/2023/11/28/jim-ratcliffes-mercedes-f1-team-ftx-crypto-fraud-lawsuit/ (https://www.telegraph.co.uk/business/2023/11/28/jim-ratcliffes-mercedes-f1-team-ftx-crypto-fraud-lawsuit/)
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If you did quick google search, there are news which state those company also face lawsuit. Here are few example,
Honestly, I didn't follow the whole FTX case in detail, now I see that almost everyone who has publicly written or spoken FTX somewhere is a target of prosecutors. I would say that these are more moves of the desperate.
Alongside the Mercedes claims, Florida lawyer Adam Moskowitz filed class action lawsuits on behalf of cryptocurrency investors against Major League Baseball, which was also sponsored by FTX. It filed an additional case against Portuguese footballer Cristiano Ronaldo for his work with Binance, the world’s largest cryptocurrency exchange.
Is this an attempt to manipulate the evidence, but I don't see how they really actively participated in the fraud. Are they just sponsorship deals, or aren't they?
This latest development adds a new layer to the existing class-action suit involving celebrity endorsers, including NFL legend Tom Brady, MLB star Shohei Ohtani and NBA great Steph Curry.
The lawsuit alleges that these prominent entities were not just passive participants but played an active role in FTX's controversial operations.
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Is this an attempt to manipulate the evidence, but I don't see how they really actively participated in the fraud. Are they just sponsorship deals, or aren't they?
The lawsuit alleges that these prominent entities were not just passive participants but played an active role in FTX's controversial operations.
I think the Telegraph article explains it in more detail, although it seems you need to log in to read the rest. The argument is that Mercedez aids them by doing promotions, ads, lending its brand name for easier promotion, hosting events together, and so on. So they argue that it is not as simple as FTX buying an ad slot, since they also profited from their cooperation by getting a new revenue channel. CMIIW.
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so they were already victims of the FTX scam and yet they are going to be prosecuted. brilliant! and then the sentence to Sam will be reduced because he's ratting them. this is a bargain.
those celebrities even lost money from this scam. but because they spoke out in favor of FTX during that time, they are going to be sued?
how did the judicial system ended this way, if it where in some other country, Sam would have been hanged already on the townsquare.
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To be fair, it could be related to if they are paid or not. If they promoted from just liking it, and if they promoted just because they got paid, are two very different things. I believe that we need to end up checking to see what we could do, and that has to be the most important part of this. I get that its not going to be that hidden, if they are paid then they have to disclose it, so there is still no need for SBF at all, we should probably not see anything that would be weird, we could still see him not snitch on anyone and yet still end up getting what they want. They just have to look at the books and can see that.
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so they were already victims of the FTX scam and yet they are going to be prosecuted. brilliant! and then the sentence to Sam will be reduced because he's ratting them. this is a bargain.
This isn't what is happening here, this is a different lawsuit against promoters of ftx and this lawsuit was filed by some of the creditors. They are charging the promoters as being culpable in the collapse of ftx by aiding the company to commit fraud, which resulted to them losing money.
They want sbf to give them info that may help them nail the promoters, and according to them if he does that, they would drop a separate civil lawsuit against him, however, this does not influence the 25 years sentencing.
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I think the Telegraph article explains it in more detail, although it seems you need to log in to read the rest. The argument is that Mercedez aids them by doing promotions, ads, lending its brand name for easier promotion, hosting events together, and so on. So they argue that it is not as simple as FTX buying an ad slot, since they also profited from their cooperation by getting a new revenue channel. CMIIW.
It is just a different wording of the same thing.
They hosted the event together, which is the same as FTX sponsoring the Mercedes event, i.e. Mercedes paid the costs of the event with the money they received from FTX in the name of placing ads on their car.
Mercedes can spend its winnings from sponsors wherever it wants, whether it's events, salaries for workers or buying food for the homeless, it's up to them.
I see this whole thing as grasping at straws for the deceived investors, but in the end, it is their fault because they made the wrong investment.
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Is this an attempt to manipulate the evidence, but I don't see how they really actively participated in the fraud. Are they just sponsorship deals, or aren't they?
Sponsorship deals must be disclosed, when somebody is being actively paid for extra activity, like in Kim's Instagram case they also must disclose that depending on the law, since we're talking about lending their name for tokens on FTX a shitload of extra paperwork.If they have breached what was supposed to be an add and user they brand to also promote FTX in particular cases they are good for the money.
so they were already victims of the FTX scam and yet they are going to be prosecuted. brilliant! and then the sentence to Sam will be reduced because he's ratting them. this is a bargain.
You're jumping to the wrong conclusion.
The case in which SBF was sentenced is DoJ against SBF, anyone else who was an investor of FTX or a claimant can open a civil case against SBF.
Even if SBF would win this civil case his 15 years in prison is still there and it won't change, what's left if how much money is he supposed to pay on top of the previous charge.
how did the judicial system ended this way, if it where in some other country, Sam would have been hanged already on the townsquare.
Name one!
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Honestly i don't understand how much SBF can help here, when those celebrity did promote FTX publicly and it shouldn't be that hard to find proof of what they did. And $1.3 million sounds small compared with few billion USD he needs to return (along with the fines). Your opinion is greatly appreciated.
I guess the fans are not doing the right thing, because at the moment these celebrities were not aware of the future events of disasters that this platform could bring, they were not obliged to check the books before endorsing it or do they? IMO they should not be punished or sued, instead the one who are suing FTX must go after SEC so they should do something about there funds.
Because many people are saying SEC is not doing the right thing at the moment means its not going after FTX its going after other platforms and SEC is abusing its power.
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Sponsorship deals must be disclosed, when somebody is being actively paid for extra activity, like in Kim's Instagram case they also must disclose that depending on the law, since we're talking about lending their name for tokens on FTX a shitload of extra paperwork.If they have breached what was supposed to be an add and user they brand to also promote FTX in particular cases they are good for the money.
However, it is one thing if you rent your name to a sponsor, and another thing entirely is how that same sponsor manages the funds of his clients. I'm pretty sure neither is Kim Ka. nor did any celebrity or even Mercedes come to FTX and suggest that they buy some trash tokens with investor funds.
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However, it is one thing if you rent your name to a sponsor, and another thing entirely is how that same sponsor manages the funds of his clients. I'm pretty sure neither is Kim Ka. nor did any celebrity or even Mercedes come to FTX and suggest that they buy some trash tokens with investor funds.
No, but it doesn't matter.
Any partnership must be disclosed to both investors in the companies involved, and any extra action in which one promotes the other without a signed contract for that is considered an endorsement and makes you liable for damages on behalf of your own clients. It's one thing to showcase an ad it's a different thing to use all your social media accounts to advertise FTX directly
https://twitter.com/MercedesAMGF1/status/1441320476941316110
And Mercedes didn't even stop on the ad on that car in time, and what's worse for them they've kept the logos for one more race after the collapse, which is also pretty bad, pretty close to definitions of aiding and aiding abetting by uslaws, and that's where the lawsuit is.