FTX former execs and promotors to settle class lawsuit for $1.3M

Former executives and promoters of FTX, a crypto exchange, have settled with a class action group of former investors for approximately $1.36 million, resolving allegations of fraud.

 

Among those involved in the settlement are FTX co-founder Zixiao "Gary" Wang, former engineering lead Nishad Singh, and Caroline Ellison, former CEO of sister trading firm Alameda Research. They have agreed to cooperate and provide information to address the claims against them.

 

Although the former executives did not admit to any wrongdoing, their collaboration and provision of information are expected to strengthen the case against other defendants, which include celebrities, companies, and venture capitalists. Notably, Ellison's settlement involves her testimony against her former partner, Sam Bankman-Fried, which could be significant in the lawsuit.

 

Wang, Singh, and Ellison have already begun sharing relevant documents and data with prosecutors in the criminal case against Bankman-Fried. They will also contribute records for FTX's bankruptcy proceedings and make themselves available for depositions and hearings.

 

In addition to cooperating with legal proceedings, they have agreed to forfeit their assets, leaving it to the judge to determine the recovery and distribution of funds to victims. Furthermore, they will not oppose the request from FTX investors to distribute the funds through the class action suit.

 

The settlement also extends to Daniel Friedberg, former FTX chief regulatory officer and FTX.US chief compliance officer.

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