Class Action Lawsuits Filed Against Promoters of Crypto Exchanges
Recently, four class action lawsuits have been filed against well-known organizations and individuals for promoting crypto exchanges. The court documents, filed in Miami, include defendants such as Cristiano Ronaldo, Major League Baseball, F1, Mercedes-Benz, and advertising agency Dentsu.
Ronaldo Accused of Unregistered Securities Solicitation
Three of the lawsuits accuse various organizations of aiding and participating in a multi-billion dollar fraud committed by FTX. These organizations promoted FTX as a safe and reputable exchange. The fourth lawsuit alleges that Ronaldo, who partnered with Binance, engaged in mass solicitation of investments in unregistered securities on behalf of Binance.
Consequences for Binance and FTX Founders
Sam Bankman-Fried, the founder of FTX, was recently found guilty on seven fraud-related charges. Additionally, Binance founder Changpeng “CZ” Zhao pleaded guilty to violating federal statutes. Zhao has resigned as CEO of Binance and the company must pay $4.3 billion in forfeitures.
Bankman-Fried’s Celebrity Pursuits
In Bankman-Fried’s trial, it was revealed that he used customer funds to finance lavish expenses and high-profile sponsorship deals. Celebrities like Larry David, Steph Curry, Tom Brady, and Kevin O’Leary were paid millions to advertise for FTX.
Future Legal Proceedings
Bankman-Fried is currently held at Brooklyn’s Metropolitan Detention Center and may face additional charges in the spring. Zhao could potentially face 12-18 months in prison while Bankman-Fried faces the possibility of decades behind bars.
Hot Take: Legal Troubles for Promoters of Crypto Exchanges
Recent class action lawsuits have targeted prominent organizations and individuals for their involvement in promoting crypto exchanges. The lawsuits highlight the alleged fraudulent practices and unregistered securities solicitation associated with these exchanges. As high-profile figures face legal consequences, it raises questions about the accountability of celebrities and organizations in the crypto industry. This legal scrutiny emphasizes the need for transparency, regulation, and responsible promotion within the crypto space.
By
By
By
By
By