Tom Brady, Larry David and Other Celebrities Named in FTX Lawsuit

A number of Hollywood and sports luminaries, including Larry David and Tom Brady, are named as defendants in a class action lawsuit against cryptocurrency exchange FTX, arguing that their celebrity status gave them little incentive to promote the company’s failed business. Mode is responsible.

FTX has been in the public eye for over a week after the third largest cryptocurrency exchange ended up losing billions of dollars and had to seek bankruptcy protection.

The Bahamas-based company and its founder, Sam Bankman-Fried, are under investigation by state and federal authorities for allegedly investing depositors’ money in venture capital investments without their approval.

Lawmakers also announced plans to investigate the FTX failure, with the House Financial Services Committee saying it plans to hold hearings on FTX in December.

Before its failure, FTX was known for using well-known Hollywood and sports personalities to promote its products.

It owns the naming rights to the Formula 1 racing team and Miami Stadium.

Its ads feature “Seinfeld” creator David Brady, Tampa Bay Buccaneers star quarterback Brady, basketball players Shaquille O’Neal and Stephen Curry, and tennis star Naomi Osaka.

The lawsuit, filed late Tuesday, said the sports and television personalities brought instant credibility to FTX and should be as reprehensible as Mr. Bankman-Fried.

“Part of the scheme employed by the FTX entities involved using some of the biggest names in sports and entertainment — such as these defendants — to raise money and drive U.S. consumer investment … to pour billions of dollars into the deceitful FTX platform to sustain the entire The plan was afloat,” the lawsuit said.

Class action attorney Adam Moskowitz pointed to previous cases in which the U.S. government sued celebrities Kim Kardashian and Floyd Mayweather for promoting cryptocurrencies. impose a fine on it.

“The crypto industry needs celebrity endorsements to gain credibility,” Mr Moskowitz said.

The plaintiff in the case is Pierce Robertson, who is also involved in another failed cryptocurrency firm, Voyager Digital, which is backed by Dallas Mavericks owner Mark Cuban.

Voyager Digital failed to file for bankruptcy protection this summer, but FTX has committed to buying Voyager assets for $1.4bn (£1.1bn), which would have eased the financial burden on Voyager depositors.

FTX’s failure now calls into question its aid to Voyager.

The lawsuit was filed in the Southern District of Florida.

Mr. Moskowitz is an attorney representing victims of a residential building collapse in Surfside, Florida.

David Boies, who represented the US government against Microsoft in the 1990s and Al Gore in the 2000 election, has also been named as counsel in the case.