FTT Surges 13% on FTX Investors to Settle With Sam Bankman

A group of FTX investors have filed a court document to settle with Sam Bankman-Fried, the founder and former CEO of FTX, under the condition that he provides relevant information about key firms and celebrities related to the defunct exchange before its collapse. The settlement terms include proof that Bankman-Fried's net worth is negative. If approved by the court, the agreement would discharge all claims against Bankman-Fried.

According to a Bloomberg report, Bankman-Fried has agreed to cooperate with the class representatives to strengthen their case against celebrity promoters of FTX by providing confidential information about their involvement in raising FTX ratings before its eventual collapse in 2022. The list of celebrities includes Shaquille O'Neal, Stephen Curry, Lawrence Gene David, Tom Brady, Gisele Bundchen, and organizations such as MBA's Miami Heat franchises, SoftBank Group, Paradigm Operations LP, and many more.

The agreement mandates that Bankman-Fried release certain documents alongside evidence of these people and organizations' involvement with FTX. He will also provide a financial statement of all his current assets and a sworn affidavit of all his financial assets, including an affidavit stating that his net worth is negative.

The settlement comes after US Senator Elizabeth Warren demanded a full account of the several meetings between the head of the US Commodity & Futures Trading Commission (CFTC), Rostin Behnam, and Bankman-Fried before the FTX implosion.

Bankman-Fried was convicted of wire fraud, securities fraud, and money laundering in November 2023, and on March 28, he was sentenced to 25 years in prison, with a forfeiture of $11 billion worth of assets to fund the repayment of the victims of the FTX collapse.