Disgraced entrepreneur Sam Bankman Fried has FTX’s celebrity endorsements, including Tom Brady, Shaquille O’Neal, Stephen Curry and Shohei Ohtani, as well as supermodel Gisele Bündchen and actor Larry David. agreed to assist FTX investors in legal disputes with investors.
According to Bloomberg, Bankman Fried, who founded FTX in 2019 and caused its bankruptcy in 2022, has agreed to cooperate with the class action lawsuit.
During its heyday, prominent celebrities contributed to the marketing of crypto exchanges.
Class action lawyer Adam Moskowitz filed a lawsuit accusing celebrity supporters of deception by making false claims about the security of their crypto assets.
The cryptocurrency exchange was once hugely popular and influential, and Bankman Freed has shown he is adept at using celebrity endorsements to fuel the platform’s rapid growth.
As a result, Bankman Freed amassed a staggering $32 billion fortune, and FTX was ranked among the top three major crypto exchanges in the world before everything collapsed.
FTX’s collapse led to a series of legal actions, culminating in Bankman Freed being sentenced to 25 years in prison for defrauding the exchange’s customers.
The former CEO is appealing his conviction and sentence and is currently being held at the Metropolitan Detention Center in Brooklyn, New York, pending transfer to prison.
These individuals are accused of promoting unregistered securities on FTX, a charge that, if proven, could have a significant impact on their legal status.
Celebs and FTX
Shaquille O’Neal was formally charged in the FTX class action lawsuit during an NBA game in March 2023.
The complaint alleges that the “FTX: I Am All In” marketing campaign, which prominently featured O’Neal, deceptively influenced consumers to use FTX, resulting in financial losses after the exchange’s collapse. ing.
Tom Brady reportedly lost a staggering $30 million in FTX’s collapse, most of which he made with the exchange in 2021 when he was an “ambassador.” The stock was now worthless.
His ex-spouse, Bundchen, also reportedly lost $18 million on extinguished stock investments related to FTX.
larry david Said The Associated Press reported that he lost “a large amount of money” after things at FTX went bad. He also called himself an “idiot” for seeking advice from his friends who were familiar with cryptocurrencies and assured him the company was legitimate.
Investors involved in the lawsuit hope to recoup some of the losses they suffered in the FTX collapse. Mr. Bankman Fried may be in a position to strengthen his case against celebrity supporters.
If approved by the judge, the agreement would release Bankman Freed from any current or future civil liability. In return, the former CEO will provide non-privileged documents detailing his assets and investments, as well as information about defendants in the civil suit.
