Tom Brady and Larry David Face Class Action For Endorsing FTX, Suit Alleges They Backed ‘Unregistered Securities’

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FTX investors have filed a class action lawsuit against the founder and former CEO of the defunct cryptocurrency exchange, as well as several celebrities who promoted the platform.

class action, filed Tuesday night in Miami, claims that Sam Bankman-Fried, NFL quarterback Tom Brady and comedian Larry David misled customers and engaged in deceptive practices to sell FTX yielding digital currency accounts.

The suit further alleges that the exchange’s yielding accounts were unregistered securities. According to the suit, the defendants used “misrepresentations and omissions” to “create confidence and induce consumers to ultimately invest in the Ponzi scheme”. Make. Sold illegally in the United States.

“The deceptive and failed FTX platform was based on false representations and deceptive conduct,” the suit reads, adding that FTX’s “fraudulent scheme was designed to take advantage of unsophisticated investors across the country who were trying to make their investments through fraudulent means.” Use the mobile app for.

Plaintiffs claim that the celebrities they listed are also liable because they “promoted, aided, and actively participated” in the alleged scheme. Listed celebrities include Kevin O’Leary, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, Naomi Osaka, and more.

late last week, ftx announced It filed for Chapter 11 bankruptcy in Delaware after weeks of speculation about the health of the company. Notably, FTX US was also implicated in the proceedings, despite claims by the former CEO that their US exchange was fine.

As reported, FTX lent $10 billion Value of client assets for making risky bets by its affiliated trading firm, Alameda Research. Since FTX held $16 billion in customer assets, the exchange lent out more than half of its customers’ funds.

Recently, the US House Financial Services Committee announced That they would hold a hearing on the collapse of FTX. He called on all companies and individuals to participate, including FTX founder Sam Bankman-Fried, Alameda Research, Binance and others.

Apart from retail traders, several high-profile crypto companies have also taken a hit following the collapse of FTX. In the past week, ftx infection Is reached BlockFi, Genesis and Gemini. According to the latest reports, the crypto lender is BlockFi preparing to file for bankruptcy, while Genesis announced yesterday that it is pausing redemptions on its lending product and will stop making new loans.

Meanwhile, the recent drama surrounding FTX has set the stage for one of the worst-case scenarios. crypto price crash throughout the last year. The flagship cryptocurrency has been trading around the $16,000 mark for the past week, a level not seen in two years. The broader crypto market is also down at least 20% over the past 10 days.

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