Lawsuit Emerges Against Tom Brady, Stephen Curry, and Others Over FTX Endorsements

The fall of the FTX exchange has everyone in the cryptocurrency realm talking. It has not just been the investors expressing concerns, but regulators across the globe have also identified the debacle as a tipping point that may speed up regulations.

After filing for Chapter 11 bankruptcy, SBF stepped down as the CEO of the firm. However, the funds of millions of investors and customers were in jeopardy. This is primarily because FTX was a large and key player in the cryptocurrency industry. The robustness that Bankman-Fried displayed to the outside world lured millions to pour their life-savings into the exchange.

In one of the latest scrutinies against FTX, a lawsuit was filed by a group of investors. The class action lawsuit is aimed at FTX, Sam Bankman-Fried, and also other celebrities who promoted the exchange in the past.

High-profile celebrities scrutinized over FTX promotion

The lawsuit alleges that the exchange, Bankman-Fried, and the celebrities were potentially a part of a scheme to defraud investors. It also alleges that it was devised to “take advantage of unsophisticated investors from around the country.”

The prominent law firms Boies Schiller Flexner LLP and the Moskowitz Law Firm brought the lawsuit to the Florida Southern District Court. The lawsuit also alleges that the defendants were active participants in the “offer and sale of unregistered securities in the form of yield-bearing accounts.”

The lawsuit takes a hit against a slew of celebrities and athletes who played their part in the promotion of FTX. Some of these celebrities include Tom Brady, Stephen Curry, former NBA star Shaquille O’Neal, Gisele B√ľndchen, Kevin O’Leary, and even the Golden State Warriors.

“FTX’s business was based upon false representations and deceptive conduct. Although many incriminating FTX emails and texts have already been destroyed, we located them and they are evidence of how FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country…,” states the lawsuit.

The collapse of FTX and its rippling effect are starting to bring down multiple persons and entities associated with the exchange. Genesis’ cryptocurrency lending arm recently halted withdrawals, citing the collapse of FTX.