Former Red Sox hitter David Ortiz and quarterback Tom Brady are listed along with many other athletes and celebrities in a class action lawsuit filed Tuesday for the sudden collapse of cryptocurrency exchange FTX. The lawsuit was filed in the U.S. District Court in Miami, Florida, where Bahamas-based FTX had recently purchased the naming rights for the Miami Heat arena. It states that plaintiff Edwin Garrison, of Oklahoma, purchased an unregistered security from FTX and funded it “with a sufficient amount of crypto assets to earn interest on his holdings.” Garrison alleges he decided to invest with FTX after being exposed to “misrepresentations and omissions” on the platform. Because Brady, Ortiz and other listed defendants acted as brand ambassadors, the lawsuit alleges they are liable for damages suffered by investors. Other famous defendants include model Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, the former star of NBA Shaquille O’Neal, Jacksonville Jaguars quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-writer Larry David. FTX founder and former CEO Sam Bankman-Fried is also named as a defendant. “Part of the scheme employed by the FTX Entities involved the use of some of the biggest names in sports and entertainment, like these defendants, to raise money and drive America’s consumers to invest in the (performance accounts ), which were offered and sold largely from the FTX entities’ nationwide base of operations here in Miami, Florida, pouring billions of dollars into the deceptive FTX platform to keep the entire system running smoothly. flood,” the lawsuit states. One of the counts included in the lawsuit is an allegation of civil conspiracy. “FTX Entities and Defendants made numerous false statements and omissions to Plaintiff and Class Members regarding of the deceptive FTX platform in order to induce trust and entice consumers to invest in what was ultimately a Ponzi scheme, misleading customers and potential customers with the false impression that to us cryptocurrency assets held on the deceptive FTX platform were safe and were not invested in unregistered securities,” the lawsuit states. FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen a good deal of volatility and turmoil this year, including a sharp drop in price. bitcoin and other digital assets. Other crypto businesses are failing in the wake of FTX’s collapse, events reminiscent of the domino-like collapses of the 2008 financial crisis. Just days after FTX’s collapse, the public is starting to realize how messy the bankruptcy case could be. Users remain frustrated in the dark when they might get their funds back, if at all. In a court filing, lawyers for FTX said there were already more than 100,000 claims against the company and estimated that figure could rise to more than one million, for most customers, once the case is finalized. completed. The court ordered FTX to provide at least a list of the company’s 50 biggest creditors by November 18. Meanwhile, The Associated Press reported that FTX and its CEO are being investigated by the Department of Justice and the Securities and Exchange Commission to determine whether any criminal activity or securities violations have been committed. The Associated Press contributed to this report.
Former Red Sox slugger David Ortiz and quarterback Tom Brady are listed along with numerous other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of cryptocurrency exchange FTX.
The lawsuit was filed in the US District Court in Miami, Florida, where Bahamas-based FTX had recently purchased the naming rights for the Miami Heat arena.
It states that plaintiff Edwin Garrison of Oklahoma purchased an unregistered security from FTX and funded it “with a sufficient amount of crypto assets to earn interest on his holdings.” Garrison alleges he decided to invest with FTX after being exposed to “misrepresentations and omissions” on the platform.
Because Brady, Ortiz and other listed defendants acted as brand ambassadors, the lawsuit alleges they are liable for damages suffered by investors.
Other famous defendants include model Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, the former star of NBA Shaquille O’Neal, Jacksonville Jaguars quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-writer Larry David. FTX founder and former CEO Sam Bankman-Fried is also named as a defendant.
“Part of the scheme employed by the FTX Entities involved the use of some of the biggest names in sports and entertainment – like these defendants – to raise funds and entice American consumers to invest in the (yield accounts), which were offered and sold largely from the FTX entities’ nationwide base of operations here in Miami, Florida, pouring billions of dollars into the deceptive FTX platform to keep the entire system afloat,” the lawsuit states. .
One of the counts included in the lawsuit is an allegation of civil conspiracy.
“The FTX Entities and Defendants made numerous misrepresentations and omissions to Plaintiff and Class Members about the deceptive FTX Platform in order to induce trust and entice consumers to invest in what was ultimately a Ponzi scheme, deceiving customers and potential customers with the false impression that all cryptocurrency assets held on the deceptive FTX platform were safe and were not invested in unregistered securities,” the lawsuit states. .
FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen a good deal of volatility and turmoil this year, including a sharp drop in price. bitcoin and other digital assets. Other crypto businesses are failing in the wake of FTX’s collapse, events reminiscent of the domino meltdowns of the 2008 financial crisis.
Just days after FTX’s collapse, the public is starting to realize just how messy the bankruptcy filing could be. Users remain frustrated in the dark when they might get their funds back, if at all.
In a court filing, lawyers for FTX said there were already more than 100,000 claims against the company and estimated that figure could rise to more than one million, for most customers, once the case is finalized. completed. The court ordered FTX to provide at least a list of the company’s top 50 creditors by November 18.
Meanwhile, The Associated Press reported that FTX and its CEO are being investigated by the Department of Justice and the Securities and Exchange Commission to determine whether criminal activity or securities violations have occurred. .
The Associated Press contributed to this report.
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