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Bankman-Fried Agrees to Help FTX Investors Sue Celebrity Crypto Promoters

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2 years ago

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Bankman-Fried Agrees to Help FTX Investors Sue Celebrity Crypto Promoters

A group of FTX investors has agreed to drop legal claims against Sam Bankman-Fried.

In exchange, the disgraced former crypto exchange CEO will cooperate in the investors’ suits against other defendants stemming from FTX’s collapse, including various celebrities paid to promote the exchange, according to court documents filed Friday (April 19).

The settlement, first reported by Bloomberg News, comes weeks after Bankman-Fried was sentenced to 25 years in prison for the fraud that led to the multibillion dollar collapse of FTX in November of 2022.

Former investors and customers in FTX have sued some of the people who endorsed the company when it was flying high, alleging they helped further the exchange’s fraud.

According to the settlement, the plaintiffs believe Bankman-Fried has “knowledge and other information” the plaintiffs find valuable in that case. As part of the agreement, Bankman-Fried would also hand over non-privileged documents that list his assets and his investment in artificial intelligence (AI) startup Anthropic, as well as an affidavit certifying his net worth as negative.

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He will also turn over any information he has on venture capital firms that invested in FTX and attorneys and accountants who worked for the company.

Even before criminal charges were filed against Bankman-Fried, a group of investors sued FTX’s celebrity endorsers — a group that includes Tom Brady, Gisele Bündchen, and Shaquille O’Neal — for securities law violations, claiming they failed to conduct proper due diligence.

The suit was filed in federal court in Miami in November 2022, days after FTX declared bankruptcy and weeks before Bankman-Fried was accused of using customer funds to finance investments, real estate purchases and political donations.

Last week’s settlement came days after Bankman-Fried appealed his conviction and sentence, part of what could be a yearslong process.

A report April 11 by Reuters noted that Bankman-Fried’s former lawyer, Mark Cohen, argued at a conference that day there was a disparity between his ex-client’s 25-year sentence and Binance founder Changpeng Zhao’s for violating anti-money laundering laws, which will likely be no more than 18 months.

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The 25-year sentence was less than the 40- to 50-year prison term that prosecutors were seeking, but far more than the five to six years pushed by Bankman-Fried’s lawyers.

“At the end of the day, the criminal justice system thrives only if it’s seen as fair,” Judge Lewis Kaplan said when announcing the sentencing. “People need to feel it is fair, or we’re back to trial by combat. The punishment must fit the seriousness of the crime. And this was a serious crime.”

 


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Crypto

Disappointed By Bitcoin And Dogecoin In 2025? These Coins Soared Over 2000% To Dominate The Gainers List

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6 days ago

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December 29, 2025

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Disappointed By Bitcoin And Dogecoin In 2025? These Coins Soared Over 2000% To Dominate The Gainers List

Amid a year of big losses for major large-cap cryptocurrencies, two under-the-radar tokens captured the market’s attention by delivering eye-popping returns.

The Unprecedented Surge

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Solana (CRYPTO: SOL)-based memecoin pippin (PIPPIN) skyrocketed 5384% in 2025 to become the cryptocurrency market’s biggest gainer of the year.

Largely dormant throughout the year, the coin ignited an explosive rally around mid-November, culminating in an all-time high of $0.6109 last week.

PIPPIN was launched as a viral AI-generated unicorn image by Yohei Nakajima, creator of the autonomous AI agent BabyAGI. After going viral on social media, the community decided to transition the token into an autonomous AI agent on X.

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Cryptocurrency YTD Gains +/- Price (Recorded at 8:14 p.m. ET)
pippin +5384.24% $0.4212
AB +2716.16% $0.004567

See Also: Bitcoin Failed As ‘Store Of Value’ In 2025, But These Crypto Derivatives Of Gold, Silver Delivered Sharp Returns — Check Them Out

Similarly, AB (AB) token rallied 2716%, emerging as the second-most successful cryptocurrency of the year. Unlike PIPPIN, the coin erupted to new highs in early 2025 but lost its footing in the later stages.

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AB, formerly known as Newton Project, is a modular blockchain ecosystem focused on cross-chain interoperability and real-world asset integration. The native token is used for paying transaction fees, executing smart contracts and enabling governance.

These towering gains stood in stark contrast to the losses endured by more popular assets like Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE), which lost their way in the last quarter of the year following robust rallies earlier.

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While Bitcoin lost 4.59% year-to-date, Dogecoin has bled 60% since 2025 started.

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Photo Courtesy: Alexandru Nika on Shutterstock.com

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© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Landmark Crypto Bills Drive 2025 Regulatory Shift as Congress Signals Commitment to Digital Asset Growth

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6 days ago

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December 28, 2025

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Landmark Crypto Bills Drive 2025 Regulatory Shift as Congress Signals Commitment to Digital Asset Growth
U.S. crypto regulation advanced sharply in 2025 as Congress set stablecoin rules, embraced regulated digital finance and accelerated market structure efforts, marking a broad legislative push that brought long-sought clarity to digital assets.
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Bitcoin price retraces 30% from record high. How does crypto market look like in 2026? | Stock Market News

Published

7 days ago

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December 28, 2025

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Bitcoin price retraces 30% from record high. How does crypto market look like in 2026? | Stock Market News

The year 2025 has remained mixed for the crypto market as the sector presents a balanced yet optimistic outlook. Looking at the positive side, there was tangible advancement—DeFi ecosystems continued to grow, stablecoins gained wider traction, CBDC infrastructure pilots moved forward, and developer participation surged across APAC and worldwide, with millions building on-chain.

“On one hand, the industry saw real progress: growth in DeFi projects, expansion of stablecoins, new CBDC-infrastructure pilots, and rising developer activity across APAC and globally, with millions committing to code on-chain. On the other hand, after early-year optimism from retail investors, the October correction was a reminder that sentiment remains fragile and that hype without real delivery can still hurt the industry,” said Nischal Shetty, Founder, WazirX.

Bitcoin has fallen roughly 30% from record high levels and is down more than 6% so far this year, as the market continues to find it difficult to recover after the October crash. According to Bloomberg report, trading activity remains subdued, with retail speculation losing momentum.

The decline has partly been driven by technical factors, with prices dropping below the 365-day moving average, while persistent selling by long-term holders has also weighed on Bitcoin.

Key drivers of the crypto market in 2025

At the beginning of the year, the market witnessed the setup of US Strategic Bitcoin Reserve, underscoring Bitcoin’s rising strategic significance.

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By mid-year, the enactment of the GENIUS Act introduced a well-defined regulatory framework for USD-backed stablecoins, strengthening confidence and paving the way for wider adoption.

The CFTC’s December 4 decision to permit listed spot crypto products on registered futures exchanges represented a key milestone, advancing the market from regulated ETFs toward more transparent cross-border compliance structures and greater institutional involvement.

Crypto market outlook in 2026

According to Shetty, global institutional appetite for regulated digital-asset products will continue to increase, driving capital inflows and contributing to market stability.

At the same time, domestic policies for countries will be key in shaping their respective investor sentiment. In India, the foundation stone of the CBDC project could be laid soon, Shetty added.

“The RBI has announced a hackathon in October to nurture tech talents in the emerging technology space, which will encourage more Indians to see emerging tech as a promising career prospect. A clearer regulatory framework for VDAs, potentially paired with supportive tax measures, support for stablecoin initiatives alongside CBDC measures, could unlock real-world blockchain use cases from Indian builders to kickstart on-chain growth for Indians,” Shetty said.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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