By Jody Godoy
(Reuters) – Celebrities who promoted FTX, including NFL quarterback Tom Brady and comedian Larry David, said an investor lawsuit seeking damages in the wake of the cryptocurrency exchange’s collapse should be dismissed.
The proposed class action in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the United States, which required the promoters to disclose the compensation they received.
The lawsuit seeks damages from FTX founder Sam Bankman-Fried alongside several celebrities who promoted FTX including David, the creator of TV shows “Seinfeld” and “Curb Your Enthusiasm.” It also seeks damages from a National Basketball Association team that promoted FTX, the Golden State Warriors.
The celebrities and the Warriors said in court papers filed on Friday that they had never pitched the accounts at issue in the case and did not cause the investors’ losses.
They said that under the investors’ theory, “actors in any brokerage ad would be liable for selling any security that an individual user later purchased using the brokerage’s services.”
“That’s nonsense,” the celebrities said.
A lawyer for the investors did not immediately reply to a request for comment.
David starred in a commercial for FTX that aired during the 2022 Super Bowl in which he portrayed fictional characters dismissing important innovations throughout history and ended with the message “Don’t Miss Out on Crypto.”
Bankman-Fried argued in court papers that the case against him should be paused while he fights criminal charges in New York. The investors did not oppose the request, he said.
Prosecutors have charged Bankman-Fried, 31, with stealing billions of dollars in FTX customer funds to plug losses at Alameda Research, and making tens of millions of dollars in illegal political donations to buy influence in Washington, D.C. He has pleaded not guilty.
The case is Garrison v. Bankman-Fried et al., No. 22-23753, U.S. District Court, Southern District Of Florida.
(Reporting by Jody Godoy in New York; Editing by Matthew Lewis)
Reuters, part of Thomson Reuters, is the largest international multimedia news provider in the world with a daily audience of more than one billion. Through Thomson Reuters desktops, the world's media organizations, and Reuters.com and Reuters TV, Reuters provides trusted business, financial, and national news to professionals and consumers alike.
Full Bio
Solana (SOL) has been on a rollercoaster ride over the past few months, with the cryptocurrency experiencing significant volatility and price swings. Starting with the 120-day period from November 27th, 2023 to March 25th, 2024, SOL kicked off at $55.05 and embarked on a steady climb, reaching a local high of $120.90 on December 25th. […]
Mar 25, 2024
Ethereum (ETH) has been on a rollercoaster ride over the past few months, with the cryptocurrency experiencing significant volatility across different time frames. Looking at the 120-day chart, we can see that ETH has been in a strong uptrend since late November 2023, with the price more than doubling from $2,027.58 to a high of […]
Mar 25, 2024
Bitcoin’s price action over the last 120 days has been a rollercoaster ride for investors. Starting around $37,000 in late November 2023, the price rallied strongly, nearly doubling to reach a high around $73,000 in early February 2024. However, after this impressive run, the price began to lose steam, retracing to around $50,000 by late […]
Mar 25, 2024
In the last few months, Solana (SOL) has demonstrated a volatile yet upward trajectory, breaking through resistance levels and occasionally falling back to test support within designated ranges. Notably, the asset showcased significant price movements and trading volumes, indicating strong buying and selling pressures at various points. The recent analysis reveals a bullish momentum, with […]
Feb 29, 2024
In the ever-evolving landscape of cryptocurrency markets, Ripple (XRP) has showcased a remarkable journey of resilience amidst volatility. Over the last 120 days, Ripple’s price has navigated through significant fluctuations, breaking above resistance levels and dipping below support levels, with trading volumes closely mirroring these pivotal movements. The recent analysis reveals a dynamic interplay between […]
Feb 29, 2024
In a remarkable journey over the last 120 days, Ethereum has showcased a bullish trend, breaking through multiple resistance levels with significant volume spikes. The recent analysis reveals Ethereum’s dynamic price movements, from struggling below the green range to soaring above the orange range, marking a peak at $3374.17. This upward trajectory is supported by […]
Feb 29, 2024
in the latest price analysis, Bitcoin (BTC) has shown an impressive surge, breaking through multiple resistance levels with significant trading volumes backing each move. Starting from a modest $35,421.4 in November 2023, BTC has climbed to a staggering $63,690.1 by February 2024. This journey was marked by a series of bullish breakouts, each supported by […]
Feb 29, 2024
Over the past 120 days, Bitcoin has shown remarkable volatility and resilience, climbing from $34,000 to over $52,000, supported by bullish moving averages.
Feb 26, 2024
Key Points: Strengthened dollar and high U.S. inflation fears prompt oil price decline, complicating rate cut expectations. Natural Gas surges 5.65% to $1.7760, bullish above pivot point $1.7333, with resistance up to $1.9291. UK Oil dips to $81.30, bearish below pivot $81.93, despite potential support at $80.67 and lower. In this article: Natural Gas -0.40% […]
Feb 26, 2024
Gold managed to stay above the key $2000 level despite rising Treasury yields.
Feb 26, 2024
Economic indicators from Germany signaled a worsening economic backdrop.
Feb 26, 2024
Samsung unveils Galaxy Ring with health-tracking features, enters smart ring market.
Feb 26, 2024By Medha Singh and Lisa Pauline Mattackal
Jul 16, 2023
By Harry Robertson and Rae Wee LONDON/SINGAPORE (Reuters) – The dollar climbed to a one-month high against Japan’s yen on Monday as traders eyed up another interest rate hike from the Federal Reserve, while the Bank of Japan stuck to its easy money policies.
Apr 17, 2023
By Chris Prentice and John McCrank NEW YORK (Reuters) – The head of the U.S. Securities and Exchange Commission (SEC) plans to defend its rulemaking and policing of market misconduct at a Tuesday hearing led by Republican lawmakers who have accused it of overstepping its authority.
Apr 17, 2023