Former FTX CEO Sam Bankman-Fried (SBF) and a number of celebrities including Tom Brady, Gisele Bündchen, Stephen Curry, and Shaquille O’Neal have been named in a class-action lawsuit involving the alleged engagement in deceptive practices with FTX. The lawsuit was filed by the attorneys Adam Moskowitz and David Boies late Tuesday, and the suit alleges that SBF and the exchange’s associated celebrities promoted unregistered securities.
Class Action Lawsuit Accuses SBF and 12 Celebrities of Pumping a ‘Ponzi Scheme,’ Claims $11 Billion in Damages Suffered
Sam Bankman-Fried, otherwise known as SBF, and 12 other defendants including the NBA team the Golden State Warriors LLC, are named in a class-action lawsuit filed by Moskowitz and Boies on behalf of the Oklahoma resident Edwin Garrison.
In addition to the NBA franchise, celebrities and well known individuals such as Tom Brady, Gisele Bündchen, William Trevor Lawrence, Kevin O’Leary, Naomi Osaka, David Ortiz, Stephen Curry, Udonis Haslem, Shaquille O’Neal, Shohei Ohtani, and Lawrence Gene David are also defendants.
“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’s complaint filed Tuesday says. “As a result, American consumers collectively sustained over $11 billion dollars in damages.”
Moreover, the lawsuit also says that SBF’s operation was no more than a “Ponzi scheme” and celebrities “actively participated” in its promotion, Garrison’s complaint insists. Additionally, the filing also notes that emails and texts between the defendants were decimated but the lawfirm was able to obtain the evidence. The complaint notes:
Although many incriminating FTX emails and texts have already been destroyed, we located them.
Garrison’s court case Garrison v. Bankman-Fried, 22-cv-23753, was filed in the Southern District of Florida. Garrison’s lawsuit claims the actions of the celebrities, FTX, and SBF hurt “thousands, if not millions, of consumers nationwide.” The 13 defendants in Garrison’s lawsuit are accused of participating in the “offer and sale of unregistered securities in the form of yield-bearing accounts.”
What do you think about the former FTX boss and 12 celebrities named in the class-action lawsuit that claims consumers suffered from $11 billion dollars in damages from the FTX fallout? Let us know what you think about this subject in the comments section below.