Brady, Curry, Shaq Among Athletes Facing Lawsuit in FTX Debacle
A class-action lawsuit was filed against FTX and its founder Sam Bankman Fried.
Tom Brady, Stephen Curry, Naomi Osaka, Trevor Lawrence, Larry David, Shohei Ohtani and Shaquille O’Neal are a few of the names included on the filing that alleges FTX and the former CEO violated Florida law by misleading customers. These individuals are accused of “either controlling, promoting, assisting in, and actively participating” in the alleged scheme that “aggressively marketed” FTX.
Oklahoma resident and investor Edwin Garrison is leading the class-action, which alleged the cryptocurrency platform “was designed to take advantage of unsophisticated investors from across the country.” According to the class-action, which was filed in the U.S. District Court for the Southern District of Florida, customers sustained $11 billion in damages.
The filing describes the company as “truly a house of cards, a Ponzi scheme where the FTX Entities shuffled customer funds between their opaque affiliated entities, using new investor funds obtained through investments in the YBAs and loans to pay interest to the old ones and to attempt to maintain the appearance of liquidity.”
FTX recently filed for Chapter 11 bankruptcy, and Bankman-Fried resigned as CEO. The platform was unable to pay its customers’ accounts due to the collapse in crypto prices. The platform’s problems go beyond financial. The Wall Street Journal reports that the U.S. Securities and Exchange Commission and Justice Department are also investigating FTX.
The Warriors are also included in the class action. Golden State informed ESPN Monday that it had halted FTX-related activities. The last promotion was the Jordan Poole bobblehead, which was given out Monday night. They are not the only ones who need to address their relationship with the platform.
Miami-Dade County and the Heat released a joint statement Friday that they would “take action immediately to terminate” the business relationship with FTX. This includes plans to “seek a new naming rights partner” for the franchise’s venue–currently named FTX Arena–per the statement. Additionally, Mercedes decided last week to remove FTX logos from its Formula One cars as it suspends the sponsorship deal, per Autosport.
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