After failed crypto exchange FTX.. Lawsuit against Celebrities
A new surprise may come from the repercussions of the collapse of the FTX platform for digital currency trading, which declared bankruptcy a few days ago, as the art stars who made advertisements for the platform are facing lawsuits, as they have contributed to defrauding customers.
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Founder and former CEO of cryptocurrency FTX, Sam Bankman, said he regretted the decision to file for bankruptcy the company a week ago.
Sam Bankman added that the five directors who have been appointed to run FTX's main subsidiaries are looking into bankruptcy options.
Sam Bankman stated that if he had been given a period of one month, clients' withdrawals of their money would have been met without delay.
FTX Group and more than 130 subsidiaries announced filing for protection from creditors under the so-called CHAPTER 11 bankruptcy law, days after it was unable to meet customer withdrawals of their deposits.
Celebrities including NFL star Tom Brady and comedian Larry David have been named in a class-action lawsuit against cryptocurrency exchange FTX, accusing them of being culpable for promoting the failed firm.
FTX, one of the world's biggest cryptocurrency exchanges, went bankrupt last week - a staggering reversal of fortune for a firm once valued at $32bn.
Celebrities in trouble
The Bahamas-based company and its founder, Sam Bankman-Fried, are under investigation by state and federal authorities for allegedly investing depositors' funds in ventures without their approval.
Before it went under, FTX was known to use high-profile figures to promote its products. It also had the naming rights to a Formula One racing team, as well as a sports arena in Miami.
Its adverts featured Seinfeld creator David, as well as Brady, the star quarterback of the Tampa Bay Buccaneers, basketball players Shaquille O'Neal and Stephen Curry, and tennis star Naomi Osaka.
It is not the first time a celebrity has fallen foul of cryptocurrency promotion. In October, Kim Kardashian agreed to pay $1.26m (£1.12m) to settle charges over a post on her Instagram.
The reality TV star failed to disclose she was paid $250,000 (£220,000) for promoting a cryptocurrency asset on her feed.
"Part of the scheme employed by the FTX Entities involved utilising some of the biggest names in sports and entertainment - like these defendants - to raise funds and drive American consumers to invest … pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat," the lawsuit said.
Class-action lawyer Adam Moskowitz filed the lawsuit in the southern district of Florida.
