FTX Former Execs and Promoters to Settle Class-Action Lawsuit for $1.3M – A group of former FTX executives and promoters has agreed to settle with a class-action group of the crypto exchange’s former investors for nearly $1.36 million, compensating them for alleged fraud. FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh, and former Alameda Research CEO Caroline Ellison have agreed to cooperate and provide information to resolve the claims against them.
Additionally, settlements were reached with seven other influencers, as well as former FTX chief regulatory officer and FTX US chief compliance officer Daniel Friedberg. While the former executives did not admit to any allegations in the lawsuit, the class group deemed their knowledge and information valuable in bolstering the case against other parties named in the lawsuit, including celebrities, companies, and venture capitalists.
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Wang, Singh, and Ellison are in the process of providing and have already commenced sharing “all non-privileged documents and/or data” that they provided to assist prosecutors in convicting their former employer, Sam Bankman-Fried, who received a 25-year sentence. Each of the three individuals faces their own sentences after pleading guilty to fraud, which the class will confirm their cooperation with the court before sentencing.
Additionally, the former executives will submit records utilized in FTX’s bankruptcy case and make themselves available for depositions and hearings. As part of the settlement agreement, the trio has also agreed to forfeit their assets for the judge in their criminal case to determine the recovery and distribution of victim funds.
They are not permitted to contest a request from FTX investors for the funds to be distributed through the class action suit, rather than through FTX’s proposed bankruptcy reimbursements or other legal actions. A settlement with Friedberg was also reached, with the filings noting he has voluntarily “provided valuable information” to the class group and “has agreed to do so on an ongoing basis.”
Friedberg’s settlement notes he “did not have knowledge of the FTX fraud,” and after he found out about it, he “immediately resigned” and “promptly contacted the authorities.” Seven YouTubers and influencers resolved the lawsuit by making payments, with contributions including $180,000 from Brian Jung, $122,000 from Kevin Paffrath, $37,485 from Tom Nash, $10,000 from Graham Stephan, and $5,000 each from Jeremy LeFebvre and Andrei Jikh.
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Details regarding the settlement amount for American football star William Trevor Lawrence were not provided, but it appears he paid approximately $1 million based on the total disclosed relief minus the sums from the other settlements. All named in the settlements were released “from all claims related to any of the alleged conduct giving rise to this litigation.”
