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Cryptocurrency users consider dropping lawsuit against Sam Bankman-Fried

Ultimately, this could affect Samowo Bankman-Fried’s reputation, as well as how the cryptocurrency community views and reacts to similar cases in the future.

Date: 2024-04-22 Author: Marek Stiller
Cryptocurrency users consider dropping lawsuit against Sam Bankman-Fried

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

According to court motions filed on April 19, it appears that the plaintiffs, who sued FTX in 2022, instead of continuing their investigation against the company, decided to pursue their case against FTX promoters using information presented during Bankman-Fried’s criminal trial.

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

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

Plaintiffs target FTX infuelcers

If approved by the court, the settlement will resolve a lawsuit between Bankman-Fried and cryptocurrency users seeking compensation for losses suffered during the FTX collapse.

According to the proposal, the plaintiffs have offered Bankman-Fried the opportunity to help prosecute FTX influencers and help victims recover by providing documents and testimony from the criminal trial.

In particular, the information may shed light on the involvement of celebrities and companies such as Naomi Osaka, Tom Brady, Stephen Curry and Shaquille O’Neal, who supported the cryptocurrency exchange before its collapse.

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The lawsuit was originally filed in November 2022, shortly after FTX declared bankruptcy, and consolidated into its current form in June 2023. The plaintiffs in the case are represented by Moskowitz Law Firm, known for its handling of cryptocurrency-based class actions.

on April 11, Bankman-Fried’s legal team filed an appeal against the conviction. They also requested that Bankman-Fried remain at the Metropolitan Detention Center in Brooklyn rather than be transferred to a federal prison in the San Francisco Bay Area to assist in his defense.

SBF appeals fraud conviction

Bankman-Fried appealed his fraud and conspiracy conv iction last week . The disgraced cryptocurrency chief was convicted at trial on seven different charges and sentenced to 25 years in federal prison.

In an additional lawsuit, lawyers for the FTX founder asked Judge Lewis A. Kaplan to detain Bankman-Fried at the Metropolitan Detention Center in Brooklyn to “facilitate access to his appellate counsel” while he works to overturn the conviction.

At sentencing, Bankman-Fried’s lawyers called the Metropolitan Detention Center “the worst federal prison in the country,” with inmates experiencing problems such as lack of access to water and poor electricity.

As reported, the FTX bankruptcy estate has set its goal to begin repayments to customers by the end of 2024, as revealed at a meeting of FTX Digital’s joint official liquidators in the Bahamas.

FTX’s bankruptcy consists of two separate processes, including a Chapter 11 bankruptcy overseen by a court in Delaware in the United States and the official liquidation of FTX Digital, a subsidiary of FTX based in the Bahamas.

However, the two entities have agreed to work together, allowing creditors to submit their claims to either party, while being assured that no creditor will receive less than what they are entitled to.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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