Crypto users propose dropping lawsuit against Sam Bankman-Fried to pursue FTX influencers

Subject to approval, the proposed settlement would resolve a civil suit between the former FTX CEO and users seeking recourse for losses during the fall of the crypto exchange.

A group of cryptocurrency users has reached an agreement with former FTX CEO Sam “SBF” Bankman-Fried as part of a class-action lawsuit filed in Florida.

In an April 19 filing in United States District Court for the Southern District of Florida, plaintiffs who sued FTX influencers in 2022 announced they had reached a settlement with Bankman-Fried. According to the filing, the plaintiffs recognized the expense and length of proceedings should they continue to pursue judgment against SBF, opting to use some of the information presented at his criminal trial to continue their case against FTX promoters.

“[Bankman-Fried] has knowledge and other information that Class Representatives and Class Counsel believe will be valuable to Class Representatives’ cases against other defendants in the FTX MDL [multidistrict litigation], particularly relating to the underlying actions and their connection to Miami, Florida, where FTX’s U.S. headquarters were based, as well as each MDL Defendants’ knowledge of and assistance with the actions and connections to other states in which jurisdictions over those Defendants is asserted,” said the April 19 filing.