U.S. Judge Dismisses Most Claims Against Celebrities Promoting FTX
A U.S. judge on Thursday dismissed most of the claims against several celebrities who promoted the cryptocurrency exchange FTX, narrowing the scope of the lawsuit and temporarily shielding figures such as NBA star Stephen Curry and comedian Larry David from legal action. However, the lawsuit concerning the promotion of unregistered securities remains ongoing.
U.S. District Judge K. Michael Moore stated in a ruling submitted on Wednesday that the FTX investors who filed the lawsuit failed to demonstrate that these celebrities were aware of any fraudulent activities at the cryptocurrency exchange. The judge wrote:
The celebrities named in the lawsuit include sports stars such as Tom Brady, Stephen Curry, and Naomi Osaka, as well as NBA’s Golden State Warriors, comedian Larry David, and “Shark Tank” judge Kevin O’Leary. The judge noted that the plaintiffs can amend their complaint and refile against these celebrities, while the allegations regarding their promotion of unregistered securities will continue.
FTX collapsed and filed for bankruptcy in November 2022, after having received support from numerous celebrities and signing partnership agreements with various sports teams. Former CEO Sam Bankman-Fried was once a powerful figure in the Washington cryptocurrency scene, having donated to both major political parties in the U.S., but he now faces seven counts of fraud and other charges, and is appealing a 25-year prison sentence.
Currently, the FTX bankruptcy restructuring team is in the process of repaying customers, with the first round of repayments (for claims under $50,000) already completed. The next round of FTX creditor repayments is scheduled for May 30 of this year.
Source: Decrypt, CNBC
