The ongoing class action lawsuit against celebrities who allegedly promoted the now-defunct FTX crypto exchange is witnessing a crucial development in the form of evidence supplied by the exchange’s former compliance chief, Daniel Friedberg. Recently filed documents reveal that Friedberg has provided evidence suggesting that promotional activities for FTX were conducted from Florida.
As the former chief regulatory officer at FTX and the chief compliance officer of FTX US, Friedberg’s sworn testimony could be instrumental in countering arguments made by some defendants who claim that the Miami-based court has no jurisdiction and that the class action lawsuit has no association with Florida.
According to Friedberg’s testimony, FTX US’ vice president of business development, Avinash “Avi” Dabir, who was responsible for managing FTX’s brand ambassadors, including well-known celebrities such as Shaquille O’Neal, Larry David, Tom Brady, and FTX founder Sam Bankman-Fried, was based in Miami. These brand ambassadors are among the defendants in the ongoing case.
Friedberg further stated that Dabir operated out of an FTX office in Miami in early 2021. This information directly contradicts the arguments put forth by some defendants, who have previously claimed that FTX did not even plan to move to Miami until late September 2022 after they had already entered into the alleged promotional agreements.
The class action lawyers are now using this new evidence to amend their lawsuit to address the jurisdictional claims made by the suit’s defendants. However, it will ultimately be up to the court to decide whether Friedberg’s testimony proves sufficient in establishing jurisdiction over the case.
On the other side of the argument, the implications for the defendants, particularly the celebrity brand ambassadors, could be far-reaching. These high-profile individuals have not just their finances but also their reputations on the line. Furthermore, the outcome of this lawsuit could serve as an important cautionary tale to other public figures who are considering promoting digital assets and platforms.
Nonetheless, it should be noted that the final decision still lies in the hands of the court. In the coming weeks and months, the court will evaluate the evidence and arguments put forth by both parties to determine whether it has jurisdiction over the case and, if so, how the legal proceedings will advance. Undoubtedly, the global crypto community will be keeping a close eye on this landmark case as it unfolds.
Source: Cointelegraph
