During its peak, the crypto exchange received significant promotion from high-profile celebrities. This led to a lucrative $32 billion fortune for Bankman-Fried and positioned FTX as one of the top three largest crypto exchanges globally.
However, the success was short-lived as a class-action lawsuit was filed by Adam Moskowitz, accusing the celebrity endorsers of deceptive practices and spreading false claims about the safety of crypto assets. As a result, the former CEO now faces legal repercussions and is appealing against his conviction and sentence.
Currently held at the Metropolitan Detention Center in Brooklyn, New York, he awaits transfer to prison. The allegations against the figures involve promoting unregistered securities on FTX, a charge that could significantly impact their legal status.
Investors affected by the collapse of FTX hope to recoup some of their losses through the ongoing litigation. Bankman-Fried could play a crucial role in supporting the case against the celebrity endorsers.
An agreement with the investors, if approved by a judge, would result in the dismissal of civil liabilities against him, both now and in the future. In exchange, the ex-CEO has agreed to provide non-privileged documents detailing his assets, investments, and information about defendants in the civil case.
