Defendant Ben Armstrong denies the allegations and states that he has never been in contact with anyone at FTX.
There’s been a bunch of social media influencers Name A new lawsuit alleges he promoted a collapsed crypto exchange ftx To millions of his followers without proper disclosure. According to the lawsuit filed on Wednesday, the influencer failed to disclose the nature of any rewards, payments or compensation received from promoting the crypto exchange.
Influencers named in the lawsuit include Erika Kulberg, Ben “Bitboy” Armstrong and Kevin Pfrath, better known on YouTube as “Meet Kevin.” Some YouTube creators have reportedly removed all video clips “supporting and praising FTX”. Sam Bankman-Fried from their channels. The lawsuit says he has since posted an apology message about his alleged support of the embattled exchange that is currently under investigation both in the United States and abroad and owes $3.1 billion to its top 50 creditors. is estimated.
The lawsuit quotes Pfrath in a November 22 YouTube video:
“Yeah, I used to be sponsored by FTX. I think it’s an insult. And this is a mark. And it sucks. If I could go back, I would change it because it would have hurt people. I feel really bad about this. People got hurt because of FTX and it’s a shame.
The plaintiffs in the lawsuit, who are seeking class-action status, are being represented by Adam Moskovitz of Moskovitz Law Firm. Moskowitz is also involved in another FTX-related lawsuit, this one being sued for ‘actively participating’ in the “offering and sale of unregistered securities in the form of yield accounts” alongside celebrities such as Tom Brady and Gisele Bündchen. Used to be.
“Although FTX paid defendants handsomely to promote its brand and encourage its followers to invest, defendants did not disclose the nature and scope of its sponsorship and/or endorsement deals, payments and compensation ,” claims the lawsuit. “This action may be one of the only ways for any victim to recover any of their losses.”
The seven plaintiffs named in the lawsuit are from both the US and abroad. They claim to have suffered losses after purchasing “an unregistered security from FTX as YBA”. [yield-bearing account]which Defendants publicized for their own and/or FTX’s financial gain. The lawsuit identified classes of plaintiffs around the world who “make up hundreds of thousands, if not millions, of consumers globally to whom FTX offered and/or sold YBA.” It is seeking that “an amount not exceeding $1,000,000,000.00” be paid in damages to the plaintiffs.
Countersuit is coming. Lawyers couldn’t possibly be more stupid on this matter. I have never had contact with anyone on FTX and never even had a relink.
Show me you’re dumb without telling me you’re dumb.
I’m going to roast these low IQ people and their lawyers https://t.co/1y2ct85vFq
– Ben Armstrong (@Bitboy_Crypto) March 16, 2023
Meanwhile, defendant Ben Armstrong has threatened to countermand, denying the allegations and saying he has never been in contact with anyone at FTX.
Mercy Mutanya is a tech enthusiast, digital marketer, author and IT business management student. He loves to read, write, do crosswords and binge-watch his favorite TV series.
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