A Trio of Celebrities Settle Lawsuits Over FTX Sponsorship Deals
Several celebrities, including NFL quarterback Trevor Lawrence, have reached settlements in lawsuits related to sponsorship deals with the now-defunct crypto-exchange FTX. According to reports, Lawrence settled for an undisclosed sum after being accused of misleading investors in FTX. YouTubers Tom Nash and Kevin Paffrath also settled their respective lawsuits, although the terms were not disclosed.
The Settlements
News of the settlements was first reported by Bloomberg News. Prior to the collapse of FTX, Lawrence had signed a sponsorship deal with Blockfolio, an FTX subsidiary, and received $205,555.35 from the company. Nash, a prominent YouTube influencer, was also paid by FTX for an endorsement before the exchange collapsed.
The Allegations
In a class-action complaint filed against Nash and other influencers, it was alleged that they removed any content promoting FTX or its founder Sam Bankman-Fried from their channels after the collapse of the exchange. Nash did not initially respond to the lawsuit, and Moskowitz Law Firm requested permission to serve the lawsuit via a tweet.
Regrets and Blame
In a video on his YouTube channel, Paffrath admitted to being sponsored by FTX and expressed regret over his involvement. However, in a subsequent video, he blamed SBF for the fraud and dismissed suggestions that influencers contributed to losses from FTX’s fraud as “ludicrous.”
Celebrity Partnerships
FTX had cultivated partnerships with several celebrities before its demise, including Tom Brady, Gisele Bundchen, Shaquille O’Neal, and Naomi Osaka. These individuals are now facing legal action for their involvement with the exchange.
FTX’s Troubles
Aside from the lawsuits, FTX recently experienced a cyber-attack that temporarily shut down its online portal for reimbursement claims. Additionally, a federal judge authorized the sale of FTX’s $3.4 billion in assets, including Solana, Ethereum, and Bitcoin, as part of the bankruptcy proceedings.
Hot Take: Settlements Reached in FTX Lawsuits
A trio of celebrities, including NFL quarterback Trevor Lawrence, has settled lawsuits related to their sponsorship deals with FTX. The settlements come after allegations of misleading investors and endorsement fraud. While the terms of the settlements were not disclosed, these developments mark a significant step in resolving the legal issues surrounding FTX’s collapse. The involvement of high-profile influencers like Tom Nash and Kevin Paffrath further highlights the impact and scrutiny faced by celebrities promoting crypto ventures. As FTX navigates its bankruptcy proceedings and deals with cybersecurity challenges, these settlements serve as a reminder of the potential consequences for both celebrities and crypto companies in an evolving regulatory landscape.
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