FTX founder Sam Bankman-Fried and celebrities who endorsed the platform hit by $11B swimsuit

A string of A-list celebrities who publicly backed disgraced crypto buying and selling platform FTX have been sued in a category motion lawsuit value $11 billion.

Stars together with Tom Brady, Gisele Bundchen, Shaquille O’Neal, Steph Curry and Larry David are amongst these named within the swimsuit filed in Florida.

It claims crypto big founder, Sam Bankman-Fried, 30, and the celebrities he recruited to endorse the agency are chargeable for round $11 billion of losses to American customers. Most of the stars have been ‘ambassadors’ for the buying and selling platform, whereas others appeared in prime-time commercials.

The swimsuit, filed by class motion legal professional Adam Moskowitz, alleges they’re collectively ‘chargeable for the various billions of {dollars} in damages they precipitated Plaintiff’. It got here as Bankman-Fried continued a determined try to salvage his repute on Wednesday by admitting: ‘We acquired overconfident and careless.’

He posted a number of tweets making an attempt to clarify how FTX crashed and even talked up the agency’s in depth media protection earlier this 12 months, writing: ‘I used to be on the duvet of each journal, and FTX was the darling of Silicon Valley.’

Bankman-Fried is already topic to a number of investigations over the agency’s collapse. 

Authorities in America and the Bahamas, the place FTX was primarily based and Bankman-Fried is at present holed up, are discussing the opportunity of extraditing him to the US for questioning.

The scandal has triggered a disaster of confidence in cryptocurrency as a complete and precipitated the worth of property together with Bitcoin to plunge.  

Bundchen regarded glamorous on stage with Sam Bankman-Fried on the Crypto Bahamas occasion. The FTX chief regarded awkward as he opted for his traditional outfit of scruffy shorts and t-shirt

The lawsuit adopted a collection of dramatic developments within the FTX case:

The checklist of names within the new submitting contains: ‘Sam Bankman-Fried, Tom Brady, Gisele Bundchen, Stephen Curry, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka, Lawrence Gene David, and Kevin O’Leary.’

They’re described within the 41-page as ‘events who both managed, promoted, assisted in, and actively participated in’ FTX’s operations, allegedly in breach of Florida legislation.

The swimsuit provides: ‘The Misleading and failed FTX Platform was primarily based upon false representations and misleading conduct.

‘Though many incriminating FTX emails and texts have already been destroyed, we situated them they usually proof how FTX’s fraudulent scheme was designed to benefit from unsophisticated buyers from throughout the nation, who make the most of cell apps to make their investments. 

Tom Brady and now ex-wife Gisele Bundchen appeared in an FTX commercial last year. They're named in a class action lawsuit which alleges the firm's collapse has cost consumers $11 billion

Tom Brady and now ex-wife Gisele Bundchen appeared in an FTX industrial final 12 months. They’re named in a category motion lawsuit which alleges the agency’s collapse has price customers $11 billion

Brady was filmed at home calling around his friends to sign them up with FTX. The company marketed the ad campaign with the slogan: 'Tom Brady is in. Are you?'

Brady was filmed at dwelling calling round his buddies to signal them up with FTX. The corporate marketed the advert marketing campaign with the slogan: ‘Tom Brady is in. Are you?’

‘In consequence, American customers collectively sustained over $11 billion {dollars} in damages.’

NFL star Brady and Bundchen, his supermodel ex-wife, are named as FTX ambassadors who ‘joined the corporate’s $20-million advert marketing campaign in 2021’  and starred in a industrial ‘exhibiting them telling acquaintances to affix the FTX platform’.

Basketballer Curry is singled out for showing in an advert marketing campaign during which he mentioned he did not should be an skilled in crypto as a result of ‘with FTX I’ve the whole lot I want to purchase, promote, and commerce crypto safely’.

David appeared in a Tremendous Bowl industrial for FTX which confirmed him portraying a collection of clueless characters as they reject shiny concepts via historical past, together with the bathroom and the lightbulb.

The advert then confirmed David reject FTX, earlier than a message seems: ‘Do not be like Larry.’ 

Larry David starred in a multimillion dollar Super Bowl ad in which he rejected cryptocurrency before viewers were told: 'Don't be like Larry.'

Larry David starred in a multimillion greenback Tremendous Bowl advert during which he rejected cryptocurrency earlier than viewers have been informed: ‘Do not be like Larry.’

David portrays a number of characters who reject inventions and ideas including the lightbulb, the toilet and space travel. He then rejects FTX - before viewers are told: 'Don't be like Larry.'

David portrays quite a few characters who reject innovations and concepts together with the lightbulb, the bathroom and area journey. He then rejects FTX – earlier than viewers are informed: ‘Do not be like Larry.’

Steph Curry's advert showed him telling viewers: 'I'm not an expert and I don't need to be, with FTX I have everything I need to buy, sell, and trade crypto safely.'

Steph Curry’s advert confirmed him telling viewers: ‘I am not an skilled and I do not should be, with FTX I have the whole lot I want to purchase, promote, and commerce crypto safely.’

Shaq donned an FTX-branded sweater as he said: 'Hey it's Shaquille O'Neal and I'm excited to be partnering with FTX to help make crypto accessible to everyone. I'm all in, are you?'

Shaq donned an FTX-branded sweater as he mentioned: ‘Hey it is Shaquille O’Neal and I am excited to be partnering with FTX to assist make crypto accessible to everybody. I am all in, are you?’

Tennis star Naomi Osaka said in her commercial: 'I'm proud to partner with FTX. Making cryptocurrency accessible is a goal that FTX and I striving towards.'

Tennis star Naomi Osaka mentioned in her industrial: ‘I am proud to accomplice with FTX. Making cryptocurrency accessible is a objective that FTX and I striving in direction of.’

Shaquille O’Neal additionally appeared in an FTX industrial, as did Steph Curry. Osaka was an ‘ambassador’ for the corporate.

The lawsuit states: ‘The Misleading FTX Platform maintained by the FTX Entities was actually a home of playing cards, a Ponzi scheme the place the FTX Entities shuffled buyer funds between their opaque affiliated entities, utilizing new investor funds obtained via investments within the YBAs [yield-bearing accounts] and loans to pay curiosity to the previous ones and to try to take care of the looks of liquidity.

‘A part of the scheme employed by the FTX Entities concerned using a number of the greatest names in sports activities and leisure – like these Defendants – to lift funds and drive American customers to spend money on the [yield-bearing accounts], which have been provided and offered largely from the FTX Entities’ home base of operations right here in Miami, Florida, pouring billions of {dollars} into the Misleading FTX Platform to maintain the entire scheme afloat.’ 

The swimsuit was filed within the US District Courtroom’s Southern District of Florida as Bankman-Fried continued his determined makes an attempt to avoid wasting his empire. 

In a collection of tweets on Wednesday, he moaned that FTX ‘acquired overconfident and careless’, writing: ‘I used to be on the duvet of each journal, and FTX was the darling of Silicon Valley.’ 

The thread additionally mentioned: ‘Just a few weeks in the past, FTX was dealing with ~$10b/day of quantity and billions of transfers.

‘However there was an excessive amount of leverage–more than I spotted. A run on the financial institution and market crash exhausted liquidity.

‘So what can I attempt to do? Increase liquidity, make prospects complete, and restart.

‘Perhaps I am going to fail. Perhaps I will not get something extra for patrons than what’s already there.

‘I’ve actually failed earlier than. You all know that now, all too effectively.

‘However all I can do is to attempt. I’ve failed sufficient for the month.

‘And a part of me thinks I would get someplace.’ 

Bankman-Fried suggested media coverage of FTX made the firm 'overconfident and careless'

Bankman-Fried advised media protection of FTX made the agency ‘overconfident and careless’ 

Bundchen (right) on stage with Bankman-Fried in her tole as FTX¿s environmental advisor

Bundchen (proper) on stage with Bankman-Fried in her tole as FTX’s environmental advisor

The fast rise and swift downfall of crypto trade FTX

Cryptocurrency trade FTX has collapsed.

Here’s a historical past of FTX since its basis in 2019:


Might – Former Wall Road dealer Sam Bankman-Fried and ex-Google worker Gary Wang based FTX, the proprietor and operator of FTX.COM cryptocurrency trade.


August – FTX acquired cell portfolio monitoring utility, Blockfolio for $150 million.


July – A $900 million funding spherical valued FTX at $18 billion.

September – FTX signed a sponsorship cope with Mercedes’ Components 1 staff.

October – FTX raised capital at a valuation of $25 billion from buyers together with Singapore’s Temasek and Tiger World.


Jan. 27 – FTX’s U.S. arm mentioned it was valued at $8 billion after elevating $400 million in its first funding spherical from buyers together with SoftBank and Temasek.

Jan. 31 – FTX raised $400 million from buyers together with SoftBank at a valuation of $32 billion.

Feb. 13 – Larry David stars in Tremendous Bowl industrial for FTX

April 26 – April 29 – Bankman-Fried is joined by celebrities together with Tom Brady, Katy Perry, Tony Blair and Invoice Clinton and the Crypto Bahamas convention.

June 4 – FTX signed a reportedly $135 million sponsorship deal for naming rights of the Miami Warmth’s dwelling court docket.

July 1 – FTX signed a cope with an choice to purchase embattled crypto lender BlockFi for as much as $240 million.

July 22 – FTX provided a partial bailout of bankrupt crypto lender Voyager Digital. Voyager known as it a ‘low-ball bid’.

July 29 – FTX mentioned it gained full approval to function its trade and clearing home in Dubai.

Aug. 19 – A U.S. financial institution regulator ordered crypto trade FTX to halt ‘false and deceptive’ claims it had made about whether or not funds on the firm are insured by the federal government.

Sept. 9 – FTX’s enterprise capital fund mentioned it will purchase a 30% stake in SkyBridge Capital.

Nov. 2 – Crypto information web site CoinDesk reported a leaked stability sheet that confirmed Alameda Analysis, Bankman-Fried’s crypto buying and selling agency, was closely depending on FTX’s native token, FTT. 

Nov. 6 – Binance CEO Changpeng Zhao mentioned his agency would liquidate its holdings of FTT attributable to unspecified ‘latest revelations’.

Nov. 7 – Bankman-Fried mentioned ‘FTX is okay. Property are high quality’.

Nov. 8 – FTT collapses by 72% as purchasers swamp the trade with withdrawal requests. Binance presents a possible bailout in a non-binding deal.

Nov. 9 – Binance backs out of the rescue plan, saying: ‘On account of company due diligence, in addition to the most recent information reviews relating to mishandled buyer funds and alleged US company investigations, now we have determined that we’ll not pursue the potential acquisition of FTX.com.’ 

Nov. 11 – Bankman-Fried resigns as CEO and FTX information for Chapter 11 chapter 

Nov. 13  Police within the Bahamas announce a staff from its Monetary Crimes Investigation Department are investigating whether or not any legal misconduct occurred.

Nov. 15 – Bankman-Fried continues to plead with buyers for cash to cowl the agency’s losses and tweets that he is ‘assembly in-person with regulators and dealing with the groups to do what we are able to for patrons’

Leave a Comment