Former FTX executives and promoters have reached a settlement worth nearly $1.36 million with a class action group of former cryptocurrency exchange investors seeking damages for fraud.
According to a federal court in Miami, FTX co-founder Zixiao "Gary" Wang, former engineering director Nishad Singh and sister trading firm Alameda Research's former CEO Caroline Ellison have agreed to cooperate and provide information for the lawsuit to resolve claims against them. offer to approve the settlement.
Agreements were also reached with seven other influential individuals, as well as former FTX regulatory director and FTX.US compliance director Daniel Friedberg.
The former executives did not admit to any of the allegations in the lawsuit, but the class group felt that the trio's "knowledge and other information" would be valuable in bolstering its arguments against others it sued - including celebrities , companies and venture capitalists.
Wang, Singh and Ellison will hand over - and have already begun to make themselves available - "all non-privileged documents and/or data" they provided in helping prosecutors lock up their former boss Sam Bankman-Fried for 25 years.
The three each face their own sentence after pleading guilty to fraud. The class will confirm their cooperation with the court before sentencing.
The former executives will also hand over the files used in the FTX bankruptcy case and make them available for testimony and questioning.
In addition, as part of the settlement, all three have agreed to relinquish their assets to the judge presiding over their criminal case, who will decide on the recovery and distribution of the victim's funds.
They cannot oppose FTX investors' requests to distribute the funds in a class action, as opposed to FTX's proposed bankruptcy repayment or other lawsuits.
