Ben 'BitBoy' Armstrong dismissed from FTX case as three celebrities settle

Quick Take

  • Crypto influencer BitBoy has been dismissed from a case relating to litigation surrounding the collapse of crypto exchange FTX.
  • Meanwhile, NFL star Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash have opted for undisclosed settlements.

Amid ongoing litigation relating to the collapse of FTX, crypto influencer Ben "BitBoy" Armstrong has been dismissed from a lawsuit while three celebrities have opted to settle the case against them.

The "Co-Lead Counsel are filing a Notice of Voluntary Dismissal of claims against FTX Defendant Ben Armstrong and will file a Notice of his settlement in the related Binance matter," a court filing stated.

Armstrong had not "served an answer or motion for summary judgment," according to another court filing — meaning he had not responded to the lawsuit's allegations or requested the court to decide the case based on presented evidence without a trial.

High-profile settlements, other celebrities in discussions

Meanwhile, Jacksonville Jaguars quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash have decided to settle the case, according to the filing. The terms of the settlements remain undisclosed. A court order officially acknowledging the settlements and removing the three from the ongoing lawsuit is currently pending approval from U.S. Judge K. Michael Moore.

The Co-Lead Counsel is also engaged in ongoing confidential settlement discussions with additional FTX Defendants, and other settlements will likely be reached, the filing noted.

Lawrence and Nash were also listed in a filing last week relating to the names and numbers behind some of FTX's marketing and sponsorship payments under former CEO Sam Bankman-Fried. 

That document listed millions of dollars in payments to celebrity athletes including Shaquille O'Neal, Naomi Osaka and David Ortiz, alongside organizations such as the MLB and the NBA’s Miami Heat and Golden State Warriors franchises. Coachella, Gamestop and Kevin O'Leary were also listed. Other celebrities sued for promoting FTX include Tom Brady, Gisele Bundchen and Steph Curry.

The FTX estate is attempting to recover funds from various sources, but the earlier filing acknowledged that it’s uncertain how much the FTX estate will be able to claw back from the payments, noting the recovered amount "...may vary materially from the amounts reported herein."

The three celebrities' decision to settle comes as the FTX case continues to unfold, with Bankman-Fried set to be tried in court on Oct. 3 for charges of fraud he allegedly perpetrated while running the exchange.

Over the weekend, FTX reopened its creditor claims portal following the security incident at its third-party claims agent Kroll. Last week, Judge John Dorsey approved a plan allowing the FTX estate to sell off billions in cryptocurrency

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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