A class action lawsuit against celebrities who allegedly promoted the now-bankrupt FTX has enlisted the cooperation of a former exchange executive.: Former head of compliance Daniel Friedberg.
In a proposed amended complaint filed May 11 in a Florida district court by class action attorneys, Friedberg is said to have provided evidence that FTX’s promotional activity originated in Florida.
Friedberg was director of regulation for FTX and director of compliance for FTX US, the US division of the exchange.
The statement could rebut a key defense made by some of the defendants, who argued that the Miami court has no jurisdiction and that the lawsuits are not related to Florida.
In his affidavit, Friedberg said that FTX US’s vice president of business development, Avinash “Avi” Dabir, was based in Miami and was in charge of FTX’s brand ambassadors, including the defendants in the case, including former basketball player Shaquille O’Neal, comedian Larry David, retired NFL player Tom Brady and FTX founder Sam Bankman-Fried.
We couldn’t keep it secret any longer! We’re partnering with…the one…the only…@SHAQ! (aka Shaktoshi) pic.twitter.com/V37UQ5wsXI
—FTX (@FTX_Official) June 1, 2022
We couldn’t keep it a secret any longer. We’ve teamed up with… the one and only… @SHAQ! (also known as Shaqtoshi)
He said Dabir was operating out of an FTX office in Miami “in early 2021.” Lawyers for the class action lawsuit said this rebuts the arguments made by the defendants in their motions to dismiss.
Some of the alleged promoters claimed that “no conspiracy could have been ‘machined in Florida’ because FTX was not even planning to move to Miami until late September 2022,” which was before they entered into the alleged promotional deals.
Class attorneys are using the new evidence to modify their lawsuit and try to address the jurisdictional claims of the defendants.
The court will decide if the evidence is sufficient.
The lawsuit was first filed in mid-November, shortly after the exchange collapsed.. Other famous alleged promoters include Brady’s then-wife and model Gisele Bündchen, businessman Kevin O’Leary and basketball star Steph Curry along with his team, the Golden State Warriors.
We’re proud to announce Tom Brady will serve as an FTX Ambassador, and Gisele as FTX’s Environmental & Social Initiatives Advisor.
“We have the chance to create something really special here.” says the Super Bowl Champion and entrepreneur @TomBrady https://t.co/yDLC1Q1KFG
—FTX (@FTX_Official) June 29, 2021
We are proud to announce that Tom Brady will be an FTX Ambassador and Gisele will be FTX’s Environmental and Social Initiatives Advisor. “We have an opportunity to create something really special here,” says Super Bowl champion and entrepreneur @TomBrady
Friedberg was also named as a defendant in an amended complaint on December 16.
Apparently, the former head of compliance has assisted in other legal proceedings against the exchange he worked for.
Investigators from the New York Attorney’s Office, the Department of Justice, the Federal Bureau of Investigation, and the Securities and Exchange Commission reportedly obtained details about FTX from Friedberg a few weeks after the exchange crashed.
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