Imprisoned FTX founder Sam Bankman-Fried has agreed to assist in the FTX civil litigation by cooperating with other defendants, according to a recent filing. The former crypto executive, who is currently serving time in Southern Florida, has been facing civil litigation from various plaintiffs seeking to recover losses stemming from FTX’s collapse and subsequent bankruptcy in November 2022. The settlement reached between Bankman-Fried and the complainants states that he will provide reasonable cooperation to the plaintiffs’ lawyers in their efforts to recover funds from the other defendants involved in the case.

Among the defendants are well-known celebrities and athletes who endorsed or worked with FTX, such as Tom Brady, Gisele Bündchen, Shaquille O’Neal, Stephen Curry, Shohei Ohtani, Kevin O’Leary, and Trevor Lawrence. Bankman-Fried’s settlement is yet to be approved by the District Court for the Southern District of Florida.

FTX faced significant allegations of mismanagement, with Bankman-Fried being accused of loaning out billions of dollars worth of customer deposits to Alameda Research, the firm’s trading arm. The collapse of FTX, which had a multi-billion dollar impact, resulted in a sharp decline in crypto prices. Bankman-Fried was subsequently arrested by US federal authorities the following month.

In November, a US jury found Bankman-Fried guilty on several charges, including wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, and conspiracy to commit money laundering. On March 28th, Judge Lewis A. Kaplan sentenced Bankman-Fried to 25 years in prison, along with three years of supervised release. Additionally, Bankman-Fried was ordered to forfeit $11 billion. He is currently appealing his conviction and sentence.

As the legal proceedings continue, it remains crucial for investors to conduct their own research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. It is important to note that transfers and trades carry inherent risks, and any losses incurred are the responsibility of the individual. The Daily Hodl does not provide investment advice or recommendations, and readers should be aware that it participates in affiliate marketing.