FTX Users File Lawsuit Against Mercedes-Benz Formula One Team and MLB
A group of FTX users has filed twin class-action suits accusing the Mercedes-Benz Formula One team and Major League Baseball (MLB) of participating in FTX’s global fraud and promoting unregistered securities. In 2021, both the Mercedes F1 team and the MLB signed promotional deals with FTX, displaying the exchange’s logo on various materials. The MLB even featured FTX patches on umpire uniforms for the first time in its history. The lawsuit claims that these partnerships created a sense of trustworthiness among fans and alleges that FTX regularly praised Mercedes F1 and its drivers. The same group of FTX users is also suing celebrities who promoted the exchange.
Celebrities Attempt to Dismiss Lawsuits, Some Settle
The celebrities named in the lawsuits, including Shaquille O’Neal and Tom Brady, have tried to have the suits against them dismissed, arguing that they did not encourage depositing money onto FTX. However, three individuals, Trevor Lawrence, Kevin Paffrath, and Tom Nash, have settled their lawsuits. It should be noted that FTX founder Sam Bankman-Fried was recently convicted on charges related to fraud and money laundering.
MLB and Mercedes End Partnerships with FTX
Shortly after filing for bankruptcy in November 2022, FTX saw its five-year promotional contract with the MLB terminated. Similarly, Mercedes F1 ended its partnership with FTX and removed the exchange’s logo from its cars and merchandise.
Hot Take: Lawsuit Alleges Involvement of Prominent Brands in FTX Fraud
A group of FTX users has filed lawsuits accusing the Mercedes-Benz Formula One team and Major League Baseball (MLB) of participating in FTX’s global fraud and promoting unregistered securities. These lawsuits highlight the potential consequences for brands that associate themselves with fraudulent crypto exchanges. The partnerships between FTX, Mercedes F1, and the MLB created a sense of trustworthiness among fans, which allegedly helped perpetrate the fraud. This case serves as a reminder for companies to thoroughly vet their crypto partners and consider the legal implications before entering into promotional deals.
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