Plaintiff Edwin Garrison has initiated a class action lawsuit against celebrity promoters and the crypto exchange FTX, which has since gone bankrupt, in an effort to recover damages. Among the defendants named in the complaint are Tom Brady, Gisele Bundchen, Stephen Curry, Kevin O’Leary, the Golden State Warriors, and Shaquille O’Neal and Larry David.
The legal action was brought before the United States District Court for the Southern District of Florida. In the class action lawsuit, the citizen of Oklahoma is representing himself as well as all of the other members of the class.
The plaintiff claims to have purchased a yield-bearing account from FTX, and the lawsuit alleges that FTX and its former chief executive officer, Sam Bankman-Fried, who is also named as a defendant, used celebrity endorsers to target “unsophisticated investors” in a “Ponzi scheme” to keep the cryptocurrency exchange afloat. The plaintiff claims to have purchased a yield-bearing account from FTX.
According to the document that was provided to the Crypto Times, “Everyone involved in the Voyager Bankruptcy Cases thought that the FTX Entities were the deus ex machina come to save the day by bailing out Voyager and paying back at least some of the losses the Voyager customers sustained.” [Crypto Times] “Everyone involved in the Voyager Bankruptcy Cases thought that the FTX Entities were the deus ex machina come to
In addition, the lawsuit said that the defendants were responsible for the failure of FTX due to “misrepresentations and omissions” on their part.
This is not the first time that celebrities have come under fire for promoting cryptocurrencies, and it won’t be the last.
Compiled by Coinbold