Tom Brady, Stephen Curry, Others Sued Over FTX Crypto Collapse –


Famous Cryptocurrency Exchange Promoters Now Bankrupt FTX—including Larry David, tom bradyGiselle Bundchen, Shaquille O’Neal and Stephen Curry— have been named in a class action lawsuit accusing FTX and its “brand ambassadors” of misleadingly encouraging consumers to invest in the company, according to Variety.

In a lawsuit filed Nov. 15 in Florida federal district court, Edwin Garrison, an Oklahoma resident who says he purchased an account with FTX performance, seeks to represent a class of “thousands, if not millions, of consumers nationwide” who were allegedly defrauded by the company. The lawsuit alleges that FTX and former CEO Sam Bankman-Fried, who are also named as defendants, used celebrity endorsers to target “unsophisticated investors” in a “Ponzi scheme” to keep the cryptocurrency exchange afloat.

“Part of the scheme employed by the FTX entities involved the use of some of the biggest names in sports and entertainment, such as these defendants, to raise funds and encourage American consumers to invest” in profitable FTX accounts, which according to the lawsuit represented unregistered values. in accordance with federal and Florida law.

The lawsuit seeks unspecified monetary damages, alleging that the collapse of FTX caused consumers to collectively lose more than $11 billion.

David, whom the lawsuit identifies as the “legendary comedian” and creator of Seinfeld Y control your enthusiasm, appeared in an FTX ad called “Don’t Miss Out on Crypto,” which aired during the 2022 Super Bowl. “The ad, the only Super Bowl commercial David appeared in, featured David being skeptical about historically important inventions like the wheel, the fork, the toilet, democracy, the light bulb, the dishwasher, the Sony Walkman, and of course. Of course, FTX, and he warned viewers: ‘Don’t be like Larry,’” the lawsuit says.

Additionally, the lawsuit cites a 2021 ad featuring Brady and his then-wife Bündchen titled “FTX. Will you join?” in which they encouraged acquaintances to join the platform.

Also named as defendants in the lawsuit are the Golden State Warriors (who signed a promotional agreement with FTX earlier this year and emblazoned the company logo on their court at San Francisco’s Chase Center), Udonis Haslem, David Ortiz, Trevor Lawrence , Shohei Ohtani, Naomi Osaka, and Kevin O’Leary. The defendants named in the lawsuit “controlled, promoted, assisted in [or] was actively involved” in the FTX business, according to the lawsuit.

“The deceptive FTX Platform maintained by the FTX Entities was really a house of cards, where the FTX Entities shuffled customer funds among their opaque affiliated entities, using new funds from investors obtained through investments in the [yield-bearing accounts] and loans to pay interest to the old and try to maintain the appearance of liquidity,” the lawsuit alleges.

Last week, Bankman-Fried stepped down as CEO of FTX. The company, which at one point held $50 billion in assets, filed for Chapter 11 bankruptcy protection after a run on deposits left it short of $8 billion in assets. Meanwhile, the SEC and the Department of Justice have launched investigations into FTX.

The lawsuit was filed Tuesday in the US District Court for the Southern District of Florida in Miami.