Former FTX Trading CEO Sam Bankman-Fried, NFL player Tom Brady, supermodel Gisele Bundchen, and comedian Larry David are among the celebrities accused of cheating investors who lost money due to the sudden collapse of the cryptocurrency exchange.
Along with other sportsmen and entertainers, these four are named as defendants in a proposed class action filed in Florida federal court on Tuesday night. All endorsed FTX, one of the world’s major crypto trading platform exchanges, prior to its 11 November bankruptcy filing; the company is currently under investigation for potential securities offences.
Adam Moskowitz, the attorney bringing the class action, stated in an email, “It is still extremely difficult to understand that a single firm duped consumers of more than $11 billion, all from our backyard here in Miami.”
In 2021, as part of a $20 million advertising effort, Brady and Bundchen reportedly shot a commercial titled “FTX. You In?” in which they encourage acquaintances to join the FTX platform.
During the 2022 Super Bowl, David, the creator of “Seinfeld” and “Curb Your Enthusiasm,” appeared in an advertisement for FTX headlined “Don’t Miss Out on Crypto.”
NBA star Stephen Curry, NFL quarterback William Trevor Lawrence, baseball player Shohei Ohtani, tennis player Naomi Osaka, and broadcaster and former basketball player Shaquille O’Neal are among the other current and past sportsmen mentioned in the lawsuit. The complaint, which was filed in the Southern District of Florida, also names Kevin O’Leary, presenter of “Shark Tank.”
Moskowitz stated that the exchange moved client funds through related businesses, using fresh investor funds and loans to pay interest to the old ones in an effort to “keep the impression of liquidity,” and that FTX used public individuals to provide the operation a veneer of respectability.
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“FTX were public relations and marketing experts who understood that such a vast Ponzi scam — larger than the Madoff scheme — could only succeed with the assistance and promotion of the most recognized, respected, and beloved celebrities and influencers in the world,” he said.
FTX did not respond to a request for comment immediately.
As part of its Chapter 11 petition, FTX’s creditors will be the first to receive any assets deemed eligible for distribution by the bankruptcy judge. Investors in the Bahamas-based firm that had raised almost $2 billion in venture financing follow.
Consequently, FTX account users who used the site to trade bitcoin, ethereum, and other digital currencies may have to wait years — if they ever receive their funds back.