FTX founder Sam Bankman-Fried, as well as a number of celebrities who supported his exchange, such as NFL quarterback Tom Brady and comedian Larry David, were sued by United States cryptocurrency investors who claimed they used misleading tactics to market FTX yield-bearing digital currency accounts.
The FTX yield-bearing accounts, according to the proposed class action lawsuit filed on Tuesday night in Miami, were unregistered securities that were forcibly offered in the country.
As a result of reports that $10 billion in customer assets were transferred from FTX to Bankman-trading Fried’s firm Alameda Research, FTX filed for bankruptcy and is now under investigation by American authorities.
At least $1 billion in client funds are missing, as per Reuters.
US investors allegedly suffered losses of $11 billion when the cryptocurrency exchange failed due to liquidity issues, according to the lawsuit.
David, the creator of “Seinfeld” and “Curb Your Enthusiasm,” as well as 11 athletes and other celebrities who marketed FTX, are being sued for damages.
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In a commercial for FTX that aired before the 2022 Super Bowl, David played fictional characters who scorned significant historical advancements and concluded with the phrase “Don’t Miss Out on Crypto.”
The Golden State Warriors basketball franchise, tennis player Naomi Osaka, and Brady are all defendants in the lawsuit.
(with inputs from agencies)
