A brand new lawsuit towards FTX founder Sam Bankman-Fried is naming a number of celebrities and athletes as co-defendants.
The category motion grievance, which Oklahoma resident Edwin Garrison filed with the U.S. District Courtroom, Southern District Of Florida, seeks to carry the defendants accountable for billions of {dollars} in damages following the collapse of FTX.
The suit claims that FTX’s movie star endorsers engaged in misleading practices after they promoted the buying and selling platform. It additionally alleges that not one of the defendants carried out due diligence previous to advertising and marketing the merchandise of the now-bankrupt agency.
“Though Defendants disclosed their partnerships with the FTX Entities, they’ve by no means disclosed the character, scope, and quantity of compensation they personally obtained in trade for the promotion of the Misleading FTX Platform, which the SEC has defined {that a} failure to reveal this data could be a violation of the anti-touting provisions of the federal securities legal guidelines.”
The movie star defendants embody soccer quarterbacks Tom Brady and William Trevor Lawrence, supermodel Gisele Bundchen, NBA stars Stephen Curry and Udonis Haslem, basketball icon Shaquille O’Neal, tennis star Naomi Osaka, comic Larry David, baseball legend David Ortiz, baseball pitcher Shohei Ohtani, Shark Tank investor Kevin O’Leary and the NBA crew Golden State Warriors.
FTX executives are additionally dealing with allegations of mishandling buyer funds. Based on a report from The Wall Avenue Journal, Bankman-Fried, Alameda Analysis CEO Caroline Ellison, FTX director of engineering Nishad Singh and FTX CTO Gary Wang have been aware that the Bahamas-based trade was loaning out buyer funds to its sister agency Alameda.
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