Trevor Lawrence and YouTube Personalities Settle FTX Endorsement Lawsuit
NFL star Trevor Lawrence, along with YouTube personalities Tom Nash and Kevin Paffrath, have reached a settlement in a lawsuit accusing them of misleading investors through their endorsement of crypto exchange FTX. Lawrence, who plays as the quarterback for the Jaguars, became a partner at FTX in April 2021. He had expressed his excitement about working with Blockfolio, an FTX subsidiary that was acquired for $150 million in 2020.
In May 2021, Lawrence announced his plan to convert his entire signing bonus of $24 million into cryptocurrency. However, he is not the only celebrity to face allegations of misleading investors through FTX endorsements. Many NFL players embraced cryptocurrency in 2021 before the market reached nearly $3 trillion in November.
Settlement Terms Remain Confidential
The details of the settlement between Lawrence, Nash, Paffrath, and FTX are undisclosed. The attorneys leading the $1 billion lawsuit against FTX’s celebrity promoters have stated that they are currently engaged in confidential settlement discussions with other parties involved. They expect that additional settlements will be reached with other individuals associated with FTX.
Hot Take: Celebrities and Crypto Endorsements
Celebrities endorsing cryptocurrencies has become increasingly common in recent years. However, these endorsements come with risks for both the celebrities and their followers. It is essential for celebrities to thoroughly research the projects they endorse and understand the potential consequences if those projects fail or face legal issues.
Similarly, as a crypto investor, it is crucial to conduct your own due diligence and not solely rely on celebrity endorsements. Always consider multiple sources of information and seek advice from trusted experts before making investment decisions in the crypto space.
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