• A class action lawsuit against celebrities such as Shaquille O’Neal and Tom Brady who promoted bankrupt FTX has gained cooperation from a former executive.
• The lawsuit alleges that “American consumers collectively sustained over $11 billion dollars in damages,” amid the collapse.
• Former FTX CEO Sam Bankman-Fried is facing criminal and civil charges in the US which include wire fraud and conspiracy to commit bank fraud.
Lawsuit Against Celebrities
A class action lawsuit has been filed against big-name celebrities who promoted bankrupt FTX including Shaquille O’Neal, Tom Brady and Naomi Osaka. The plaintiffs claim that “American consumers collectively sustained over $11 billion dollars in damages,” due to the collapse of the company. Former FTX Chief Compliance Officer Daniel Friedberg provided evidence tying Florida to the celebrities, according to lawyers representing the plaintiffs. The lawsuit was filed in the U.S. District Court in the Southern District of Florida, though the defendants have said the court “lacks specific personal jurisdiction over them” and that they don’t have a connection to the state.
FTX Connections To Florida
Lawyers laid out FTX’ connections to Florida in their complaint, including that it organized “its worldwide headquarters located here in Miami, Florida.” In addition, they argued that based on new evidence “there appears to be no state that has more connections to the FTX Brand Ambassador Defendants than the state of Florida.”
Charges Against Bankman-Fried
Former FTX CEO Sam Bankman-Fried is facing criminal and civil charges in relation to his involvement with FTX which include wire fraud and conspiracy to commit bank fraud amounting up to more than 100 years imprisonment if convicted. He has asked a New York judge to dismiss most of these charges calling some of them “dramatic”.
Impact Of Lawsuit On Celebrities
It remains unclear how this case will end for those involved but it could lead to significant financial repercussions for those named as defendants if found guilty of wrongdoing or negligence by promoting an allegedly fraudulent business during its final days. Furthermore, it could also damage their reputation for having endorsed a company which has now gone bust leaving many people out of pocket due financial losses incurred through their investments into its digital currency accounts.
The outcome of this case will be highly anticipated as it could potentially send shockwaves across other similar scenarios where high profile individuals are used as brand ambassadors without proper background checks into their business practices being conducted prior endorsement by these celebrities or influencers.