FTX Celebrity Promoters Back in the Spotlight

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  • FTX customers have found a new ally in their fight against FTX celebrity promoters: Sam Bankman-Fried
  • Bankman-Fried has agreed to assist customers in their fight against celebrity promoters in return for the dropping of a class-action suit
  • The deal would see the former FTX CEO hand over information regarding the various celebrity deals

FTX customers have a new ally in their fight against the exchange’s celebrity promoters: Sam Bankman-Fried. The freshly jailed prisoner has agreed on a deal with a group of customers who had started a class-action lawsuit against him whereby they will drop the suit if he helps them in their fight against the phalanx of celebrities who promoted FTX during its boom years. Luminaries including Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O’Neal, and Larry David face lawsuits from customers who allegedly used the exchange off the back of their paid endorsement, and Bankman-Fried will now assist in their attempts to recover some of the lost funds.

$1 Billion Lawsuit Gathers Steam

FTX was famed for its huge endorsement deals, utilizing the fame of celebrity athletes and sports teams to entice new customers, even acquiring naming rights to the Miami Heat’s arena. A case valued at a total of $1 billion has been launched against a raft of influential promoters, with lawyers revealing in a September 2023 filing that three prominent endorsers, including NFL quarterback Trevor Lawrence, had agreed to settle and that they were hopeful of securing more.

While some have been keen to settle and get the matter over with, others have decided to fight, with attorneys representing them arguing that the investors’ claims lack merit because the endorsements didn’t encourage individuals to deposit money into FTX accounts.

They also contend that the endorsers had no role in alleged losses tied to FTX’s misappropriation and mismanagement.

Judge Set to Rule on Deal

The agreement between the customers and Bankmna-Fried was filed in a Miami court on Friday, with the judge set to read and rule on it this week.

If approved, the settlement would release Bankman-Fried from both current and future civil liability tied to the collapse of FTX, but in return he would have to “aid in victim recovery,” including providing the group with information and assisting their litigation efforts, including offering testimony and handing over relevant documentation.