Before criminal charges were filed against Bankman-Fried, investors had sued FTX's celebrity endorsers, including Tom Brady, Gisele Bündchen, and Shaquille O’Neal, for securities law violations. They claimed these celebrities failed to conduct proper due diligence. The lawsuit was filed days after FTX declared bankruptcy and weeks before Bankman-Fried was accused of using customer funds for personal investments, real estate purchases, and political donations.
Key takeaways:
- A group of FTX investors has agreed to drop legal claims against former CEO Sam Bankman-Fried, who will cooperate in their suits against other defendants related to FTX's collapse.
- Bankman-Fried was sentenced to 25 years in prison for fraud that led to the multibillion-dollar collapse of FTX in November 2022.
- As part of the agreement, Bankman-Fried will hand over non-privileged documents that list his assets and his investment in AI startup Anthropic, and any information he has on venture capital firms that invested in FTX.
- Investors had previously sued FTX's celebrity endorsers, including Tom Brady, Gisele Bündchen, and Shaquille O’Neal, for securities law violations, claiming they failed to conduct proper due diligence.