Tom Brady And Gisele Bündchen Among Famous People Defendants in FTX Lawsuit: Among the list of celebrities named as defendants in a class-action lawsuit against the defunct cryptocurrency startup FTX is Tom Brady and his ex-wife Gisele Bündchen. An investor filed an action against the company on Tuesday, claiming that the celebrity endorsements of the former couple, as well as those of Naomi Osaka, Steph Curry, Shaquille O’Neal, Larry David, and others, gave the company legitimacy.
According to the lawsuit, “some of the biggest names in sports and entertainment, including these Defendants, were used as part of a scheme employed by the FTX Entities to raise funds and drive American consumers to invest… pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat.”
The AP reports that the corporation filed for bankruptcy less than a week before the lawsuit was filed because it had incurred billions of dollars in damages. State and federal authorities are looking into the company’s founding by Sam Bankman-Fried.
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Reps for Brady and Bündchen did not immediately respond to PEOPLE’s request for comment.
Aside from utilizing endorsements from famous people, the corporation also owned the name rights to Miami’s FTX Arena. Last Friday, a spokeswoman for the Miami Heat confirmed to ESPN that the team planned to take down all of the arena’s signs soon.
The county and the team said in a joint statement, “The reports about FTX and its affiliates are highly disheartening.” “Actions to sever ties with FTX will be taken immediately by Miami-Dade County and the Miami HEAT. Collectively, we will seek out a new arena naming rights partner.”
According to ESPN, FTX had previously owned the name rights to a Formula One racing team and sponsored the Golden State Warriors and the Washington Wizards.
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A consensus has not been reached on the ethics of celebrity sponsorships for new cryptocurrency startups.
For “promoting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she got for the promotion,” the U.S. Securities and Exchange Commission (SEC) filed charges against Kim Kardashian last month, and she agreed to resolve those accusations last month.
On October 3, the SEC made public its charges against the SKIMS founder, stating that he “agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.” The SKIMS founder, age 42, did not admit or deny the SEC’s findings, but he did agree to pay the penalties and cooperate with the investigation.
To paraphrase SEC Chair Gary Gensler’s comments, “the Kardashian case serves as a reminder that, just because a celebrity or influencer endorses an investment opportunity, including a security based on a crypto asset, does not guarantee that the product is suitable for every investor.”
To paraphrase what he said, “We encourage investors to examine the risks and opportunities of an investment in light of their personal financial goals.”
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