FTX Users Target Mercedes Racing Team, MLB in Lawsuit: Details
- FTX users have named the Mercedes F1 team and Major League Baseball (MLB) in a lawsuit.
- The two entities have been accused of promoting the crypto exchange’s fraudulent activities.
- The logo of the exchange was displayed at prominent locations in F1 races on Mercedes cars after a partnership.
- The shirts of MLB umpires had the FTX logo printed on them during matches, according to the lawsuit.
The users of bankrupt crypto trading platform FTX have mentioned the Mercedes-Benz Formula One team and Major League Baseball (MLB) in a lawsuit, claiming that the two entities promoted the fraudulent activities of the digital asset platform founded by disgraced entrepreneur Sam Bankman-Fried. The Mercedes F1 team and MLB entered into promotional deals with the exchange at the peak of its popularity.
As per an exclusive report from Fortune, the plaintiffs, which consist of former users of FTX, filed twin class-action suits in a Florida District Court on November 27, accusing the Mercedes F1 team and MLB of “aiding and abetting and/or actively participating in the FTX Group’s massive, multibillion-dollar global fraud” while promoting unregistered securities.
It is important to note that the Mercedes F1 team signed a deal with FTX in 2021, which resulted in the logo of the exchange being printed on cars, uniforms, hats, and other materials. Further, the MLB also signed a similar deal, which made it the first professional sports league to strike a deal with a digital asset trading platform. MLB umpires had the logo of the exchange printed on their shirts.
The class action lawsuit stated, “The centerpiece, and most important feature, of the partnership, however, was the inclusion of FTX.US patches on all MLB umpire uniforms,” while adding:
“The FTX.US patches marked the first time in the history of MLB, which dates back to the 1800s, that a sponsor brand has had its logo appear on umpire uniforms.”
The FTX users mentioned similar allegations against the Mercedes F1 team, stating that it was responsible for promoting the exchange’s operations by printing its logo at prominent locations on its cars, merchandise, and marketing.
The crypto exchange also “regularly cheered on and congratulated” Mercedes F1 and its drivers, and as per the lawsuit, this created a “veneer of trustworthiness with Mercedes F1 fans.”
“This ploy would not have been as effective were it not for Mercedes F1’s parallel promotions of FTX,” the lawsuit read.
As reported earlier by BitcoinWisdom, A-list celebrities who backed the bankrupt crypto exchange, including Naomi Osaka, Shaquille O’Neal, Larry David, Gisele Bundchen, Tom Brady, and others, were named in a lawsuit filed by attorney Adam Moskowitz worth $11 billion.