FTX investors agree to drop civil lawsuit against SBF if he snitches on ...

[ABCbits]

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 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.


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.

[Lucius]

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.

[Crwth]

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.

[Stompix]

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.

[Power420]

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

[yhiaali3]

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.

[Z-tight]

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.

[hugeblack]

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.

[Stompix]

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.

[ABCbits]

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.

[examplens]

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?

[Aanuoluwatofunmi]

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.

[ABCbits]

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.telegraph.co.uk/business/2023/11/28/jim-ratcliffes-mercedes-f1-team-ftx-crypto-fraud-lawsuit/

[examplens]

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.

[joniboini]

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.