US Celebrities Sued For $11 Billion For Endorsing FTX
- Tom Brady was accused of urging fans to use FTX, which many believe was structured as a Ponzi scheme.
- Sam Bankman-Fried is currently being investigated for his possible role in the collapse of FTX.
- Several firms with exposure to FTX are currently in a fight for survival.
A-list celebrities who backed the bankrupt crypto exchange FTX have been sued in a class action suit worth $11 billion alongside Sam Bankman-Fried, the platform’s former CEO. The suit, which was filed in Florida, named celebrities such as Naomi Osaka, Shaquille O’Neal, Larry David, Gisele Bundchen, Tom Brady, and others.
The suit, filed by class action attorney Adam Moskowitz, accused these celebrities of engaging in deceptive practices with FTX and causing users to lose billions in the process. This class action suit is the latest legal woe facing the 30-year-old Bankman-Fried.
Basketballer Stephen Curry was said to have appeared in an FTX ad campaign where he credited FTX for providing “everything I need to buy, sell, and trade crypto safely.” Additionally, the suit singled out NFL star Tom Brady and his estranged supermodel wife, Gisele Bundchen, for featuring in a commercial where they urged fans to use the FTX exchange.
A part of the 41-page suit read,
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. As a result, American consumers collectively sustained over $11 billion dollars in damages.
The FTX Drama Continues
FTX’s decline is impacting the industry worse than many expected. Crypto firms with exposure to the exchange are left fearing the worst. Nestcoin, a Nigerian Web3 startup, recently revealed that it held its assets in FTX. The platform reportedly laid off half of its 100 employees in a bid to ease its troubles.
According to new reports, Nestcoin’s co-founder and CEO, Yele Bademosi, is reaching out to other tech firms in search of roles for his laid-off staff. He wrote on Twitter,
At Nestcoin, we’ve been fortunate to have had so many talented people on our team and we want to help them find their next opportunity. If you’d like to hire any of our talented Nesters who are leaving, please email us at [email protected].
Nestcoin allegedly stored the bulk of its stablecoin on FTX and has little doubt over any possible recovery.