Sam Bankman-Fried, the embattled entrepreneur behind FTX, has agreed to support investors in their legal battle against the celebrity endorsers of the cryptocurrency exchange, including high-profile figures like Tom Brady, Shaquille O’Neal, Stephen Curry, and Gisele Bundchen. This move comes as Bankman-Fried continues to grapple with the fallout from FTX’s collapse, which led to his bankruptcy and subsequent imprisonment.
The class action lawsuit, filed by attorney Adam Moskowitz, alleges that the celebrity endorsers deceived consumers by making false claims about the safety of crypto assets, ultimately leading to financial losses for investors. Bankman-Fried’s cooperation in the lawsuit could potentially strengthen the case against the endorsers.
FTX once enjoyed significant popularity and influence, thanks in part to Bankman-Fried’s adept use of celebrity endorsements. However, the exchange’s downfall resulted in a cascade of legal actions, ultimately leading to Bankman-Fried’s conviction and sentencing to 25 years in prison.
The celebrities named in the lawsuit, including Shaquille O’Neal, Tom Brady, and Gisele Bundchen, are accused of promoting unregistered securities on FTX. If proven, this could have serious legal implications for their involvement with the exchange.
Bankman-Fried’s agreement to cooperate in the lawsuit could lead to the dropping of civil liabilities against him, provided that it is approved by a judge. In exchange, he will provide non-privileged documents detailing his assets and investments, as well as information on the defendants in the civil case.
Investors involved in the litigation hope to recoup some of their losses from the collapse of FTX. With Bankman-Fried’s assistance, they may have a stronger case against the celebrity endorsers who played a role in promoting the exchange.
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