A recent court filing has revealed that a class action lawsuit against several high-profile celebrities, including Shaquille O’Neal, Tom Brady, and Naomi Osaka, for promoting bankrupt FTX has gained significant momentum. This development comes after former FTX Chief Compliance Officer, Daniel Friedberg, provided evidence linking the state of Florida to these celebrity endorsers.
This connection to Florida is crucial, as the lawsuit was initially filed in the U.S. District Court in the Southern District of Florida. The celebrity defendants have since claimed that the court lacks specific personal jurisdiction over them and that they have no tangible relationship with the state. However, with Friedberg’s recent findings, the plaintiffs’ lawyers stated, “Based upon this new, extensive evidence, there appears to be no state that has more connections to the FTX Brand Ambassador Defendants than the state of Florida.”
The class action lawsuit originally emerged in November, just days after FTX announced its filing for Chapter 11 bankruptcy. It accuses 12 celebrities of misleading customers and engaging in deceptive practices to sell FTX yield-bearing digital currency accounts. The suit’s allegations state that American consumers suffered collective damages of over $11 billion during the company’s collapse.
The plaintiffs’ lawyers have highlighted FTX’s strong connection to Florida in their complaint, pointing out that the company established its worldwide headquarters in Miami, Florida. Additionally, former FTX CEO, Sam Bankman-Fried, is currently facing criminal and civil charges in the US.
Bankman-Fried has been indicted on eight criminal charges, including wire fraud and conspiracy to commit bank fraud. His legal team recently requested a New York judge dismiss most of the charges, labeling some as “dramatic.” Some of the charges they have asked to be dismissed include conspiring to commit wire fraud on FTX customers, bank fraud conspiracy, and unlawful political contributions.
If convicted, Bankman-Fried could face over 100 years in prison for his supposed crimes.
This lawsuit serves as a prominent example of the necessary diligence customers should exercise when investing in digital currencies, specifically in light of celebrity endorsements. Furthermore, it highlights the significance of proper oversight and the need for clearer regulations in the rapidly growing blockchain and cryptocurrency market. While the technology behind these products undoubtedly presents substantial benefits and opportunities, its evolution constantly gives rise to ethical and legal complexities that must be managed to protect consumers, companies, and investors alike.
Source: Cryptonews
