According to the lawsuit, Bankman-Fried, the exchange, and the celebrities may have participated in a plan to mislead investors.
Everyone in the cryptocurrency world is buzzing about the collapse of the FTX exchange. Not only have investors voiced their concerns, but authorities from all around the world have also noted the scandal as a turning moment that might hasten the adoption of laws.
SBF resigned as the company’s CEO after filing for Chapter 11 bankruptcy. However, millions of consumers and investors’ money was in danger. The main reason for this is that FTX was a significant and influential player in the cryptocurrency market. Millions of people invested their life fortunes in the exchange due to Bankman-seeming Fried’s strength to the outside world.
An investor group has brought a lawsuit against FTX in one of the most recent investigations of the company. Sam Bankman-Fried, FTX, as well as other famous people who have previously advocated the exchange, are the targets of the class action case.
High-profile celebrities are being investigated for FTX advertising
According to the lawsuit, Bankman-Fried, the exchange, and the celebrities may have participated in a plan to mislead investors. Additionally, it is claimed that it was created with the intention of “taking advantage of naive investors from all over the country.”
The case was filed in Florida Southern District Court by renowned law firms Boies Schiller Flexner LLP and the Moskowitz Law Firm. The defendants allegedly took part actively in the “offer and sale of unregistered securities in the form of yield-bearing accounts,” according to the lawsuit.
Numerous athletes and celebrities that participated in the FTX campaign are named defendants in the case. Tom Brady, Stephen Curry, Shaquille O’Neal, a former NBA player, Gisele Bündchen, Kevin O’Leary, and even the Golden State Warriors are a few of these well-known people.
“FTX’s business was based upon false representations and deceptive conduct. Although many incriminating FTX emails and texts have already been destroyed, we located them and they are evidence of how FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country…,” states the lawsuit.
The demise of FTX and its cascading effects are starting to affect numerous people and organizations connected to the exchange. Genesis‘ bitcoin lending division has stopped accepting withdrawals, citing FTX’s demise.
