The proposed settlement, if approved, would end a civil lawsuit filed by users demanding compensation for losses they sustained after the collapse of the cryptocurrency exchange against the former CEO of FTX.

As part of a class-action lawsuit filed in Florida, a group of cryptocurrency users has come to an arrangement with Sam "SBF" Bankman-Fried, the former CEO of FTX.

The lawsuit filed on April 19 in the United States District Court for the Southern District of Florida revealed a settlement that was struck between the plaintiffs and Bankman-Fried over the FTX influencer lawsuit from 2022.

The petition states that the plaintiffs choose to use some of the evidence from SBF's criminal prosecution to forward their case against FTX promoters, acknowledging the cost and duration of the legal process should they seek judgement against him.

[Bankman-Fried] The filing dated April 19 stated that the class representative and class counsel believe the information she possesses, among other things, will be useful in their cases against other defendants in the FTX MDL [multidistrict litigation].

This includes information about the underlying actions and their connection to Miami, Florida, the location of FTX's U.S. headquarters, as well as the knowledge and assistance that each MDL defendant has regarding the actions and their connections to other states where jurisdiction is asserted over those Defendants.

The settlement would end the legal dispute between SBF and cryptocurrency users who were seeking compensation for damages sustained after FTX's collapse, pending approval by the court.

According to the complaint, on March 28, the day a judge sentenced Bankman-Fried to 25 years in prison, the plaintiffs proposed the settlement.

his conviction on felony felony charges.

The plaintiffs in the lawsuit proposed that Bankman-Fried assist in prosecuting FTX influencers and aid in victim recovery through documents and testimony provided during his criminal trial.

The lawyers specifically cited information related to celebrities and companies responsible for endorsing the crypto exchange before its downfall, including sports stars Naomi Osaka, Tom Brady, Stephen Curry and Shaquille O’Neal.

The lawsuit, first filed in November 2022, shortly after FTX filed for bankruptcy, was consolidated into its present form in June 2023. The Moskowitz Law Firm, behind many crypto-based class-action lawsuits, represented the plaintiffs.

Bankman-Fried’s lawyers filed notice to appeal the former FTX CEO’s conviction and sentence on April 11.

They also requested SBF remain at the Metropolitan Detention Center in Brooklyn rather than a federal prison in the San Francisco Bay Area to assist in his defense.