Sefolosha, 33, spent the past three seasons with the Atlanta Hawks. He averaged 7.2 points, 4.4 rebounds and 1.5 steals in 62 regular-season games (42 starts) in 2016-17, but he fell out of favor in the postseason, playing just eight minutes in a six-game series against Washington.
He suffered a broken right leg when police officers arrested him outside a Manhattan nightclub in April 2015. He needed surgery and missed the Hawks' postseason run to the Eastern Conference finals that year.
Sefolosha sued the New York Police Department, claiming false arrest, excessive force, malicious prosecution and false imprisonment. The sides settled for $4 million this past April.
Sefolosha said he would donate a "substantial" portion of that amount to an Atlanta-based nonprofit that helps support and train public defenders across the country.