FTX Celebrities Facing Lawsuits Over Endorsements
With the conviction of FTX co-founder Sam Bankman-Fried (SBF), the focus is now on celebrity endorsers of the exchange. A class-action lawsuit in Miami accuses former football player Tom Brady, comedian Larry David, and others of luring investors into a company that allegedly stole their money.
The lawsuit seeks damages from the celebrities it accuses of improper due diligence. While SBF’s conviction won’t directly impact the plaintiffs’ case, experts believe that his prosecution will play a significant role in the investor lawsuit, as it showed what was happening at FTX and its sister hedge fund before both collapsed in November 2022.
SBF Conviction The “Beginning of Justice”
According to Adam Moskowitz, the lawyer fighting for the plaintiffs in the class-action lawsuit, Bankman-Fried’s verdict is their first taste of justice. Videos of FTX celebrity endorsements were aired at SBF’s criminal trial, which may appear damning. However, lawyers for the celebrities argue their clients’ promotions didn’t directly encourage anyone to invest in FTX.
FTX Celebrities Are Prime Targets
Wealthy celebrities offer a prime opportunity to recover customer funds since SBF is now likely penniless. So far, NFL quarterback Trevor Lawrence and influencers Kevin Paffrath and Tom Nash have settled the plaintiffs’ claims against them. The terms of the settlement have not been disclosed.
The complexity of the FTX case could mean other endorsers experience a long court battle. Civil cases around dealing with fraud are ongoing.
Hot Take: Is Justice on the Horizon?
Celebrity endorsers face potential legal battles after SBF’s conviction. The outcome remains uncertain, but this could be just the beginning of a lengthy legal process for these high-profile individuals.
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