What started off as a growing trend for celebrities has turned into a legal battle.
On Nov. 15, FTX founder Sam Bankman-Fried along with Shaquille O’Neal, Tom Brady, Stephen Curry, Naomi Osaka, and more were named as defendants in a class action lawsuit, according to Yahoo Sports.
Filed in Florida, the suit describes the celebrities’ endorsements of FTX as a “fraudulent scheme” and “designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.”
Each of the celebrities included in the lawsuit has appeared in an ad for the company.
The Worth Of The Lawsuit
It’s reported that FTX is being sued for $11 billion in damages.
What Is FTX?
FTX Trading Limited is a cryptocurrency exchange.
Last week, the company filed for bankruptcy and Bankman-Fried resigned as CEO, per the outlet.
“Fuc-ed up, and should have done better,” he tweeted before the bankruptcy announcement.
“Not a good dev,” he added.
As previously reported by AfroTech, Curry joined Brady at FTX as a shareholder and ambassador in September 2021 as his first crypto venture.
“I’m excited to partner with a company that demystifies the crypto space and eliminates the intimidation factor for first-time users,” Curry shared in a press statement at the time. “FTX is likeminded when it comes to giving back to the community in meaningful ways and I can’t wait to see what we can achieve together.”
As for Osaka, the tennis champion became an ambassador in March 2022 to help bring more women into Web3.
Being that the lawsuit is newly filed, an official decision of if FTX should pay up to $11 billion or more to its consumers is yet to be confirmed. Additionally, the outlet notes that it’s unclear if the celebrities will have to pay.