Celebrities

Tom Brady, Larry David, Other Celebrities Named in FTX Suit

Tom Brady, Larry David, Other Celebrities Named in FTX Suit

NEW YORK (AP) – A host of Hollywood and sports celebrities, including Larry David and Tom Brady, were named as defendants in a class-action lawsuit against cryptocurrency exchange FTX, arguing that their celebrity status made them guilty of promoting the firm’s failed business model.

FTX has been in the public eye for more than a week after the third-largest cryptocurrency exchange ended with losses worth billions of dollars. Seek bankruptcy protection Friday. Bahamas based company and its founder, Sam Bankman-Fried, Under investigation by state and federal authorities for allegedly investing depositors’ funds in ventures without their approval.

Legislators too announced plans to investigate FTX’s failure, the House Financial Services Committee said it plans to hold a hearing on FTX in December.

Before its failure, FTX was known for using high-profile Hollywood and sports celebrities to promote its products. It had the naming rights to a Formula One racing team as well sports field Its ads in Miami feature “Seinfeld” creator David, as well as Brady, star quarterback of the Tampa Bay Buccaneers, basketball players Shaquille O’Neal and Stephen Curry and tennis star Naomi Osaka.

The lawsuit, filed late Tuesday, alleges that these sports and TV celebrities brought instant credibility to FTX and should be as guilty as 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 funds and manipulate American consumers into investing … pouring billions of dollars into the fraudulent FTX platform to float the entire scheme,” the lawsuit said.

Class-action attorney Adam Moskowitz points to previous cases in which the US government fined celebrities Kim Kardashian and Floyd Mayweather for promoting crypto.

“The crypto industry needs celebrity endorsers to have any credibility,” Moskowitz said.

The plaintiff in the case is Pierce Robertson, who is involved in a lawsuit involving Voyager Digital, another failed cryptocurrency company that was endorsed by Dallas Mavericks owner Mark Cuban. Voyager Digital failed to file for bankruptcy protection this summer, but FTX has pledged to buy Voyager’s assets for $1.4 billion, which should lead to financial relief for Voyager depositors. FTX’s failure now calls into question Voyager’s support.

The lawsuit was filed in the Southern District of Florida. Moskowitz is an attorney representing victims of a Florida residential tower collapse in Surfside, Florida.

Well-known attorney David Boyce, who represented the US government against Microsoft in the 90s, and Al Gore in the 2000 election, are also named as attorneys in the case.

The Miami Heat begin a four-game road trip in Toronto on Wednesday. Forward Udonis Haslem, named in the lawsuit, is away from the team for personal reasons.

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Fatima Hussain in Washington and Tim Reynolds in Miami contributed.


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