In this article, we will discuss why do FTX investors sue celebrities. A string of A-list celebrities who publicly backed disgraced crypto trading platform FTX have been sued in a class action lawsuit worth $11 billion. Stars including Tom Brady, Gisele Bundchen, Shaquille O'Neal, Steph Curry and Larry David are among those named in the suit filed in Florida.
Why Do FTX Investors Sue Celebrities?
It claims crypto giant founder, Sam Bankman-Fried, 30. and the celebrities he recruited to endorse the firm are responsible for around $11 billion of losses to American consumers. Many of the stars were 'ambassadors' for the trading platform, while others appeared. in prime-time commercials.
Bankman-Fried is already subject to several investigations over the firm's collapse.
Authorities in America and the Bahamas, where FTX was based and Bankman-Fried is currently holed up, are discussing the possibility of extraditing him to the United States for questioning.
The scandal has triggered a crisis of confidence in cryptocurrency as a whole and caused the value of assets including Bitcoin to plunge.
The list of names in the new filing includes: 'Sam Bankman-Fried, Tom Brady, Gisele Bundchen, Stephen Curry, Golden State Warriors, Shaquille O'Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka, Lawrence Gene David, and Kevin O'Leary.'
They are described in the 41-page as 'parties who either controlled, promoted, assisted in, and actively participated in' FTX's operations, allegedly in breach of Florida law.
The suit adds: 'The Deceptive and failed FTX Platform was based upon false representations and deceptive conduct.
'Although many incriminating FTX emails and texts have already been destroyed, we located them and they evidence how FTX's fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.
What is the Result of FTX Investors Sued Celebrities?
As a result, American consumers collectively sustained over $11 billion dollars in damages.
NFL star Brady and Bundchen, his supermodel ex-wife, are named as FTX ambassadors who 'joined the company's $20-million ad campaign in 2021' and starred in a commercial 'showing them telling acquaintances to join the FTX platform'.
Basketballer Curry is singled out for appearing in an ad campaign in which he said he didn't need to be an expert in crypto because 'with FTX I have everything I need to buy, sell, and trade crypto safely'.
David appeared in a Super Bowl commercial for FTX which showed him portraying a series of clueless characters as they rejected bright ideas through history, including the toilet and the lightbulb.
The ad then showed David rejecting FTX, before a message appeared: 'Don't be like Larry.'
Bottom Line
There are many consequences of FTX being sued and celebrities got involved. This article discusses why do FTX investors sue celebrities.
