Former FTX executives and promoters, including co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh, and Alameda Research ex-CEO Caroline Ellison, have reached a settlement of nearly $1.36 million with a class-action group of FTX’s former investors seeking compensation for alleged fraud.
The settlement involves Wang, Singh, and Ellison agreeing to cooperate and provide information to the lawsuit to resolve the claims against them. Although they did not admit to any of the allegations, their knowledge and information are deemed valuable in strengthening the case against other defendants, including celebrities, companies, and venture capitalists.
Wang, Singh, and Ellison will provide non-privileged documents and data to the prosecutors, as they have already done during the case against Sam Bankman-Fried, their former boss. They each face their own sentences after pleading guilty to fraud, and their cooperation with the court will be affirmed before sentencing.
Additionally, the former executives will forfeit their assets, and the judge in their criminal case will decide the recovery and distribution of victim funds. They will also make themselves available for depositions and hearings related to FTX’s bankruptcy case.
The settlement agreement includes provisions for the recovery and distribution of funds to FTX investors through the class suit. Other settlements were reached with former FTX chief regulatory officer Daniel Friedberg and seven YouTubers and influencers, who have agreed to provide valuable information and cooperate ongoingly.
All parties involved in the settlements are released from claims related to the alleged conduct giving rise to the litigation, marking a conclusion to this aspect of the legal proceedings.
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