- Investors have brought a lawsuit against the celebs who promoted the defunct crypto trading platform FTX.
- FTX declares bankruptcy in dramatic fashion.
- Celebrities who have the suit names range from athletes like Steph Curry and Tom Brady to Larry David.
Investors filed a lawsuit against celeb endorsements of FTX who hawked it in the wake the sudden collapse.
The Proposed class actionNames Sam Bankman-Fried founder of FTX, as well celebrities who were paid to promote company such as Tom Brady, Steph Curry and David Ortiz.
Plaintiffs claim that defendants made “many misrepresentations, omissions… to induce confidence in consumers and to drive them to invest in what was ultimately Ponzi scheme.”
The suit was filed in Miami on Tuesday. The Washington Post reported.
FTX filed for bankruptcy on Friday. It had invested millions in promotions, such as partnerships with celebs and sponsorships like the Miami Heat’s FTX Arena. Deals with finance influencers.
O’Leary, who was both a spokesperson for FTX as well as an investor, said that he is writing it all down to zero in an interview with Insider. It’s unclear what can be recovered. There are many claims. I’ve seen this movie before. It’s difficult, it’s obvious. There will be a lot of litigation.”
Several financial influencers who promoted FTX have since apologized to their followers, including Graham Stephan on YouTube. Insider reported previously.
Stephan stated that he was not a believer of the information he was given and he was sorry. Stephan made this statement in a video to more than 4 million subscribers. I trusted them but their parent company wasn’t forthcoming with all the risks. This was one of them. This behavior is something I would never have imagined.”
According to the suit, “American consumers collectively suffered over $11 billion in damages from FTX.”
FTX representatives and Brady, Curry Ortiz and David representatives did not immediately reply to Insider’s request.
