Sam Bankman-Fried, the man behind the failed FTX cryptocurrency exchange scandal, is now set to drag some celebrities in a new class-action lawsuit. Bankman-Fried is currently serving a 25-year prison sentence for fraud after investors and customers sought to recoup losses after FTX’s collapse.
The company FTX was once valued at $32 billion with over a million users. But it saw its downfall after revelations surfaced that most of its assets were held by Alameda Research, a company also run by Bankman-Fried. This paved the way for the revelation of $8 billion deficit in the company, drawing legal action against Bankman-Fried. The long ongoing scandal is now targeting two well-known celebrities.
All The Celebrities Named In The Lawsuit Against Sam Bankman-Fried
As the legal brawl around the FTX scandal continues with Sam Bankman-Fried at its center, celebrities Tom Brady and Larry David are the new targets in the case. A group of investors filed a class-action lawsuit in the US District Court’s Southern District of Florida accusing Bankman-Fried and celebrities recruited to endorse FTX of causing approximately $11 billion in losses to American consumers.
Both Tom Brady and Larry David have been named in the case for endorsing FTX through commercials. Brady has even appeared in an ad campaign where he asks, “Tom Brady is in. Are you?” Along with these two stars, the case also names Stephen Curry, Shaquille O’Neal, and Naomi Osaka, for starring in commercials promoting FTX.
As the case progresses, Bankman-Fried has agreed to cooperate with the plaintiffs. But in exchange for dropping civil liability claims against him, he might consider turning against his celebrity backers.
The plaintiffs propose that Bankman-Fried will have to help the investigators in prosecuting FTX influencers. It further necessitates him to help them in victim recovery by providing documents and testimony from his criminal trial.
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What Does The Case Mean For The Accused Celebrities?
Though the celebrities named in the scam are sure to have invited trouble with their involvement with the company, the extent of damages they may be liable for remains unclear. This is mostly because they were compensated by Bankman-Fried to enhance the profile of his crypto empire. However, the lawsuit has asserted that these celebrities played a role in FTX’s operations, and thus violated Florida law through deceptive conduct.
Bankman-Fried was first convicted on fraud charges in November 2023, and soon sentenced to 25 years in prison with a forfeiture of $11.2 billion. The businessman expressed regret during his sentencing hearing, but the judge still noted a lack of remorse for the crimes he committed.
Bankman-Fried’s spokesman Mark Botnick stated that since FTX’s collapse, the company has been trying to return the assets to customers. However, the involvement of celebrities in the legal battle has certainly complicated the case.
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