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Celebrities Request Dismissal of FTX Class Action Lawsuit

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On April 18th, according to a newly filed court motion, celebrities involved in promoting the cryptocurrency exchange FTX class action lawsuit have requested the court to dismiss t

Celebrities Request Dismissal of FTX Class Action Lawsuit

On April 18th, according to a newly filed court motion, celebrities involved in promoting the cryptocurrency exchange FTX class action lawsuit have requested the court to dismiss the case. These celebrities include comedian and director Larry David, NFL star Tom Brady, Gisele Bundchen, NBA star Stephen Curry, Udonis Haslem, TrevorLawrence, Kevin O’Leary, baseball star Shohei Ohtani, David Ortiz Tennis star Naomi Osaka and the NBA Golden State Warriors. According to relevant lawyers, these celebrities did not advocate investing in the Income Account (YBA), and the class action lawsuit is claiming losses from such accounts. Previously, it was reported that regulatory agencies in Texas are investigating celebrities promoting FTX, including NBA star Curry and NFL star Brady. （Cryptoslate）

NBA star Stephen Curry and other celebrities have asked the court to dismiss the lawsuit on promoting FTX

Introduction

In a new court motion filed on April 18th, it was revealed that several celebrities who promoted the cryptocurrency exchange FTX are requesting the dismissal of the class action lawsuit filed against them. Among the celebrities named in the motion are comedian and director Larry David, NFL star Tom Brady, Gisele Bundchen, NBA star Stephen Curry, Udonis Haslem, TrevorLawrence, Kevin O’Leary, baseball star Shohei Ohtani, David Ortiz Tennis star Naomi Osaka, and NBA team the Golden State Warriors. This article aims to provide insights into the claims made against these celebrities and why they are requesting to have the case dismissed.

FTX Class Action Lawsuit – Background

The class action lawsuit filed in December 2020 against FTX Exchange, its CEO Sam Bankman-Fried, and crypto influencers alleges that they misled investors into buying a worthless cryptocurrency called “Yum Brands Account” (YBA) and the celebrities named above were also implicated in the lawsuit.
According to the lawsuit, YBA tokens were sold on FTX Exchange, and skeptics had warned YBA’s comedic marketing campaign could result in significant losses. However, FTX Exchange and celebrities like Brady and Curry continued to promote YBA, leading to unwary investors losing money.

Celebrities’ Request for Dismissal

According to the relevant lawyers, the celebrities did not advocate investing in YBA, and they did not benefit from selling it to investors. Lawyers representing the celebrities also note that these public figures did not help develop YBA and that their endorsement was ethical, and typically earned them six-figure sums.
Celebrity promoters of FTX have asked for the case to be dismissed since the celebrities’ promotion was truthful and honest. They argue that their celebrity status should not be used against them as they were only contracted endorsers of the cryptocurrency exchange rather than acting as financial advisers.

Regulatory Agencies’ Investigation

Regulatory bodies in Texas were also investigating the FTX promotions involving celebrities. This investigation started soon after the lawsuit was filed against the celebrities. Texas Department of Banking asked FTX to cease and desist offering securities in Texas via misleading advertising.

Conclusion

As celebrities tied up in the class action lawsuit filed against the FTX Exchange and several crypto influencers look to dismiss the lawsuit. The recent filings in the court motion, together with the investigation by Texas regulators, will shed light on the true nature of celebrities’ roles in the FTX Exchange.

FAQs

Q1. What is FTX Exchange?
Ans: FTX is a cryptocurrency exchange that provides trading, futures, and index products for digital assets.
Q2. What is YBA?
Ans: YBA is a worthless cryptocurrency that was promoted by FTX and its celebrity endorsers.
Q3. Why are celebrities asking for dismissal of the lawsuit?
Ans: The celebrities claim that they did not advocate investing in YBA and that they did not benefit from selling the token to investors.

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