three of FTX Celebrity endorsers have settled a lawsuit brought by investors in the failed exchange.
Like Bloomberg News reported On Friday (September 16), Jacksonville Jaguars quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash agreed to settle allegations that they helped mislead investors into backing the company. Sam Bankman-Fried's fraudulent cryptocurrency company.
Terms of the deal were not disclosed. The report notes that the settlements are the first to be reached in a series of lawsuits against celebrities and sports figures accused of promoting Bankman-Fried's company while carrying out a multimillion-dollar fraud.
He trial in that fraud case is scheduled to begin in federal court next month. Bankman-Fried, 31, who has pleaded not guilty, faces decades in prison if he is convicted.
Meanwhile, the demands are pending against other celebrities who endorsed FTX, including Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O'Neal and Larry David.
As PYMNTS reported, Bankman-Fried, like many crypto companies, courted figures from the sports world to promote your company. Before his company folded, he bought the naming rights to the Miami Heat's stadium and published a Super Bowl ad with David, co-creator of โSeinfeldโ and star of the long-running HBO comedy โCurb Your Enthusiasm.โ
The company is also waiting to recover part of the funds paid to O'Neal and other sports figures.
The news came two days after now-bankrupt FTX gained court approval to sell its cryptocurrency assets to pay customers in US dollars.
The decision by US Bankruptcy Judge John Dorsey in Wilmington, Delaware, is designed to reduce the risks associated with price volatility in cryptocurrency markets.
Under the plan, FTX can sell up to $100 million worth of cryptocurrencies per week and is allowed to enter into hedging and staking agreements to reduce the risk of price volatility and earn passive income on more conventional crypto assets such as bitcoin and ether.
The request was made by FTX and received the blessing of the committee representing FTX clients in bankruptcy, along with an ad hoc committee representing non-U.S. clients with deposits on the FTX.com international exchange.
Dorsey also allowed FTX to increase its liquidation pace up to $200 million per week, subject to agreement by both committees of creditors. FTX has revealed that it owns $3.4 billion in cryptocurrencies, including major holdings in solana, bitcoin and ether.
There were also reports last week that FTX is set for a possible revival, and the exchange's estate has reached out to more than 75 potential bidders since May and received several offers.
