Celebrities such as Tom Brady and Shaquille O’Neal are being sued by an investor for promoting bankrupt cryptocurrency exchange FTX.
Brady, O’Neal, and other celebrities such as basketball star Stephen Curry and supermodel Gisele Bundchen (Brady’s ex-wife) are being sued for promoting the FTX cryptocurrency exchange to “unsophisticated investors.”
In a legal claim filed in U.S. federal court, investor Edwin Garrison is asking to represent a class of potentially millions of investors who lost money when FTX filed for bankruptcy on November 11, claiming $8 billion U.S. in losses.
Garrison claims that FTX used celebrities such as NFL quarterback Tom Brady to promote its crypto exchange and funnel investors money into what was essentially a Ponzi scheme.
Brady and his former wife Bundchen filmed a commercial called “FTX. You In?” that showed them encouraging acquaintances to join the crypto platform. Other celebrities made similar promotions for FTX.
“FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments,” Garrison said in his lawsuit. “As a result, American consumers collectively sustained over US$11 billion” in damages.
The lawsuit is the first to be filed by an investor following FTX’s collapse. In court earlier this week, FTX said it may have more than a million creditors.
Legal experts say FTX’s Chapter 11 bankruptcy filing could prevent any investors from getting their money back from the crypto exchange.
