- The class action lawsuit filed against the former CEO of FTX, for the collapse of his crypto consortium, will also involve other defendants such as Larry David, Naomi Osaka, Tom Brady, Gisele Bündchen and Shaquille O’Neal, for having controlled, promoted, helped or actively participate in FTX Trading.
- The lawsuit argues that in order to boost FTX’s unregistered securities, the company relied on a number of high-profile backers, with the sole aim of steering investors into a Ponzi scheme.
Just as if it were a matter of shows or Hollywood, the problem around the crypto company FTX is more than hot and in the eye of the hurricane, growing as the days go by, leaving more and more chapters of intrigue with each passing day. new information that comes to light as if it were a soap opera.
Recapitulating a bit in this “cryptonovela”, a few days ago Binance announced that would liquidate all your positions in the FTT token, FTX’s native token, this led to questions about whether the platform had liquidity problems to which Sam Bankman-FriedCEO of FTX came out to declare that the platform was stable.
Despite the statements of Bankman-FriedBinance’s action caused investors they will also begin to liquidate their positions causing millions of dollars to flow off the platform leading FTX to a collapse.
Faced with this situation, Binance decided to support the company to avoid falling out of favor. However, due to various irregularities filed around the FTX platform, Binance announced that it would withdraw from the purchase of the crypto firm, which led to FTX and 130 firms affiliated with the exchange to declare bankruptcy and Sam Bankman-Fried, retired from office and apologized for his mismanagement,
Subsequently, the crypto company’s assets were frozen by the Bahamian regulator, while deep scrutiny by the United States authorities began, especially due to some reports that $10 billion in client assets were transferred. from FTX, to Bankman-Fried’s trading company, Alameda Research.
The firm’s misfortune was to others’ advantage, as FTX’s crash boosted Trezor sales, plus it helped Uniswap become the second-biggest Ethereum exchange.
Celebrities named in class action lawsuit against FTX
Currently the controversy continues, since as it is said colloquially, “to add more salt to the wound”, in the United States began a class action lawsuit against the former CEO of FTX, for the collapse of his digital consortiumwhich was presented on November 15 in Miami, United States.
Neverthelessthe demand It doesn’t stop there, since I alsoIt involved other defendants, celebrities who endorsed the firm and its token,which, it is claimed, “controlled, promoted, assisted, or actively participated in FTX Trading.”
Some of these defendants are Tom Brady, Gisele Bundchen, Kevin O’Leary, Udonis Haslem, David Ortiz, Steph Curry, Shaquille O’Neal, Trevor Lawrence, Shohei Ohtani, Larry David and Naomi Osaka were named in connection with at least one billion of dollars in funds from missing clients of the exchange.
Lawsuit alleges sale of unregistered securities
The plaintiffs pointed out in the document legal that FTX income-generating accounts were illegally traded in the United States.
Likewise, Edwin Garrison, a resident of Oklahoma and one of the plaintiffs, pointed out that when the digital asset exchange presented problems with cash flow, North American investors suffered damages totaling $11 billion dollars.
The lawsuit alleged that FTX tried to destroy incriminating emails, texts, and evidence of its criminal activities. Nonetheless, recovered evidence suggests “the FTX fraud scheme was designed to take advantage of unsophisticated investors across the country, who use mobile apps to make their investmentsEdwin Garrison said.
Likewise, the legal team advising Garrison stated that, In order to boost FTX’s unregistered values, the company relied on a number of prominent backers, with the sole aim of steering investors into a Ponzi scheme.
It is worth noting that this pyramid scheme is prohibited by law.
Garrison also noted that through the Ponzi scheme, investor funds were transferred to other entities, with the aim of pretending a supposed liquidity on the part of FTX. Therefore, what is in the crosshairs of the law is not the exchange of cryptocurrencies that allowed the purchase and sale of this type of asset, but rather one that promised to pay interest to those who invested in these virtual currencies.
Therefore, the lawsuit argues that it integrates the aforementioned celebrities, due to the fact that they used deceptive practices, with the purpose of selling an account service that bears interest in FTX digital currency.
Filed in Florida by class action attorney Adam Moskowitz, this class action case against a crypto firm is one of the first to attempt to hold prominent artists and athletes who promoted cryptocurrency in the boom years accountable for their support.
You might be interested in: