FTX Executives Settle $1.35 Million Fraud Lawsuit

Former executives and promoters of bankrupt cryptocurrency exchange FTX have agreed to a $1.35 million settlement in a class action lawsuit.

The agreement, which includes FTX co-founder Gary Wang, former head of engineering Nishad Singh, and Caroline Ellison, former CEO of sister trading firm Alameda Research, It aims to provide compensation to victims of the exchange collapse.

The settlement will help allocate funds to those who were defrauded by FTX.

The executives pleaded guilty to fraud charges and testified against FTX’s former CEO, Sam Bankman-Fried.

Bankman-Fried was sentenced Thursday to 25 years in prison for fraud related to the downfall of FTX.

Bankman-Fried’s conviction was shorter than the 40 to 50 years sought by federal prosecutors but longer than the 6 1/2 years suggested by her attorneys.

Bankman-Fried faces a maximum sentence of 110 years in prison.

The Bahamas-based cryptocurrency exchange he founded filed for bankruptcy in November 2022 after it was revealed that Alameda Research’s balance sheet contained significant illiquid assets, most of which were in FTT, the exchange’s native token.