FTX to settle class action lawsuit against former executives and promoters for $1.3M

Former FTX executives and promoters are seeking damages for defrauding the crypto exchange's ex-investors class action group in a nearly $1.36 million settlement.

FTX co-founder Zixiao “Gary” Wang, former head of engineering Nishad Singh and former CEO of sister business Alameda Research Caroline Ellison have agreed to provide legal information to settle the claims against them. The bid will require settlement approval.

Settlements were reached with seven other influencers and former FTX Chief Regulatory Officer and FTX.US Chief Compliance Officer Daniel Friedberg.

The former executives denied any of the allegations in the lawsuit, but the class action team found the trio's “knowledge and other information” useful in bolstering the case against others — including celebrities, companies and venture capitalists.

Wang, Singh and Ellison will copy — and have already begun sharing — “all unauthorized documents and/or information” as they help prosecutors lock up their former boss, Sam Bankman-Fried, for 25 years.

The three will each face separate sentences after pleading guilty to fraud. They confirm their cooperation with the court before the sentence.

The former executors will provide records used in FTX's bankruptcy case and make themselves available for prosecution and trial.

In addition to the terms of the agreement, the three agreed to forfeit their property to the judge in their criminal case to determine the recovery and distribution of the victims' money.

Investors should not object to FTX's request that the funds be distributed in a class action, as opposed to FTX filing bankruptcy or other lawsuits.

A settlement was also reached with Friedberg, the filing said, adding that he voluntarily “provided useful information” to the unit and “agreed to continue to do so.”

RELATED: Sam Bankman-Fried sentenced to 25 years in prison

The Friedberg settlement said it had “no knowledge of the FTX fraud” and that it “immediately resigned” and “immediately contacted authorities” after learning about it.

Seven YouTubers and influencers have paid $180,000 to settle the lawsuit, 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 Lefevre and Andrej Dzic.

No settlement information was available for American football star William Trevor Lawrence, but he appears to have paid $1 million in total undisclosed relief, minus other settlement amounts.

All “claims related to the alleged acts that gave rise to this litigation” were released, as stated in the settlements.

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