A new lawsuit centering around failed exchange FTX has named legendary sports stars like Tom Brady and David Ortiz as potential defendants. Many of these individuals have long been associated with FTX and promoted what is now considered a fraudulent and twisted exchange.
Tom Brady and Others Are Being Sued
The lawsuit was filed in the U.S. District Court of Miami, Florida. Not long ago, FTX had purchased the naming rights of the home arena for the Miami Heat.
The lawsuit states:
Part of the scheme employed by the FTX entities involved utilizing some of the biggest names in sports and entertainment, like these defendants, to raise funds and drive American consumers to invest in the (yield-bearing accounts), which were offered and sold largely from the FTX entities’ domestic base of operations here in Miami, Florida, pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat.
Figures like Brady and Ortiz have operated as brand ambassadors for FTX in the past. According to the suit, this makes them liable for any losses or damages incurred by traders. Brady’s now ex-wife Giselle Bundchen has also been named in the lawsuit due to her taking part in the firm’s promotion.
Brady has also appeared in several commercials for FTX, the most recent of which poked fun at the bitcoin mining process. Brady was seen with a flamethrower in hand and burning away at a huge block of ice. Once the ice melted, a large bitcoin was revealed.
The lawsuit continued with:
The FTX entities and defendants made numerous misrepresentations and omissions to plaintiff and class members about the deceptive FTX platform in order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme, misleading customers and prospective customers with the false impression that any cryptocurrency assets held on the deceptive FTX platform were safe and were not being invested in unregistered securities.
The FTX exchange will go down as one of the biggest embarrassments of the crypto world. Once considered a top exchange, the enterprise came to a sudden halt in mid-November when it was announced that Sam Bankman-Fried – the man behind the platform – was approaching Binance as a means of garnering additional funds to keep the business in play. At the time, FTX was allegedly enduring a liquidity crunch.
A Major Disappointment
While Binance initially took on the idea of the merger, the notion was later rejected given that the exchange felt FTX’s problems were too big for it to handle. Since then, FTX has filed bankruptcy and Sam Bankman-Fried has resigned from his position as head executive of the company.
Another top name included in the lawsuit was Kevin O’Leary, a known crypto bull and star of the reality series “Shark Tank.”