FTX Investors Collaborate with Sam Bankman-Fried to Bring Down Celebrity Who Supported FTX
FTX Investors Withdraw Claims Against Sam Bankman-Fried in Exchange for Assistance in Lawsuit Against Celebrities
Investors and customers of FTX have chosen to drop their claims against former FTX CEO Sam Bankman-Fried in order to receive his aid in pursuing legal action against celebrities who endorsed FTX. The lawsuit includes well-known figures such as David Ortiz, Katy Perry, Tom Brady, and others. The potential recoveries from this lawsuit exceed $1.3 million, as the celebrity endorsements played a significant role in leveraging the popularity of FTX.
As part of the agreement, investors will withdraw all existing and future claims against Bankman-Fried. In return, he will assist in taking legal action against the celebrities who promoted FTX, resulting in financial losses for the investors.
Bankman-Fried’s cooperation will involve providing nonprivileged documents that detail his assets, investments in companies like Anthropic, and information about other defendants involved in the civil litigation.
The combined lawsuit, filed in federal court, includes a diverse group of defendants, ranging from sports stars like David Ortiz and Shaquille O’Neal to entertainers like Katy Perry and Tom Brady.
The potential outcome of this settlement goes beyond resolving the claims against Bankman-Fried. If successful, the plaintiffs have the opportunity to recover a substantial amount, surpassing the settlements offered by the promoters involved in the pact, which total approximately $1.3 million.
A noteworthy aspect of this settlement involves Trevor Lawrence, the quarterback for the Jacksonville Jaguars, who was recruited as an endorser for FTX in 2021. Lawrence’s involvement highlights the extent to which FTX relied on celebrity endorsements to establish its brand visibility.
While representatives for some celebrities named in the lawsuit, such as Gisele Bündchen, Shaquille O’Neal, and Tom Brady, have yet to comment on the settlement, the outcome of the legal proceedings could have significant implications for both FTX and the individuals involved.