Celebrities Who Promoted FTX Say Victims Cannot Sue Over Lost Accounts 14

Celebrities Who Promoted FTX Say Victims Cannot Sue Over Lost Accounts

  • The celebrities who promoted FTX have stated that the exchange’s victims can’t sue them over their lost accounts and funds. 
  • Celebrities including Larry David and Tom Brady were named in a class-action lawsuit filed against Sam Bankman-Fried. 
  • The class-action lawsuit alleges that FTX unlawfully offered unregistered securities in the form of yield-bearing accounts. 

TV stars and sports personalities associated with the Bahamas-based crypto exchange FTX have responded to a class-action lawsuit that seeks damages for their role in endorsing and promoting the exchange before its collapse in November last year. As per filings submitted in a Miami court, the celebrities believe that they are not liable for the losses faced by the plaintiffs aka FTX investors and account holders. 

Celebrities say the FTX investors’ theory is “nonsense”

According to a report by Reuters, celebrities including comedian Larry David, NFL star Tom Brady, and Shark Tank host Kevin O’Leary stated in their court filing that they never pitched the FTX accounts that the exchanges victims had and therefore they could not be held responsible for the losses incurred by the victims. The filing highlighted the theory put forward by the investors as per which, “actors in any brokerage ad would be liable for selling any security that an individual user later purchased using the brokerage’s services.” The celebrities deemed this theory to be “nonsense”. 

The class action lawsuit was filed against Sam Bankman-Fried in the U.S. District Court for the Southern District of Florida on 15 November last year by Edwin Garrison, an FTX customer from Oklahoma. Over the past months, the lawsuit has attracted other victims of the crypto exchange and added additional defendants, including the National Basketball Association’s Golden State Warriors. The suit alleges that the bankrupt crypto exchange’s yield-bearing accounts were unregistered securities that were illegally sold in the U.S. 

The Moskowitz Law Firm, the law firm representing the plaintiffs, announced earlier today that they had managed to serve a summons to NBA Hall of Famer Shaquille O’Neal, another defendant in the case. Shaq had reportedly been evading the attempts made by the law firm’s process servers to serve him the summons.