Tom Brady, Steph Curry, and numerous other athletes got really into crypto back in 2021. Unfortunately, since their involvement in the space, cryptocurrencies as a whole have been in the gutter. Accusations of fraud have run rampant, and no one is under more scrutiny than FTX and its founder, Sam Bankman-Fried.
FTX Goes Under
FTX, one of the largest crypto platforms in the world, filed for bankruptcy. No one who used the exchange can get to their funds, and they are effectively lost forever. That is $11 billion just gone in a matter of mere minutes. There are thousands upon thousands of customers who are upset, and they are coming after everyone involved with FTX.
According to TMZ, a class action lawsuit was filed on Tuesday in a Florida Federal court. FTX is being accused of fraud, and the damages are in excess of $11 billion. This is a huge lawsuit that is a landmark moment for the cryptocurrency world. Of course, this isn't the landmark case they were hoping for.
Tom Brady & Others Implicated
Numerous celebrities and athletes are being named in the lawsuit, including Tom Brady. Brady did a commercial for FTX and was a huge believer in Bitcoin. Attorneys are naming Brady and Gisele Bundchen directly in the lawsuit. They are even coming after people like Steph Curry, Shaq, Larry David, David Ortiz, and a whole host of others.
Attorneys claim that the celebrities were used in a scheme to profit off of inexperienced investors. These are some very scathing allegations, and this lawsuit could very well lead to a lot more litigation down the road. After all, numerous cryptocurrency exchanges are going bankrupt.
Overall, this is a bad situation for everyone, although we particularly feel for the investors. Crypto was all of the rage last year, and it sucks to see so many people fall victim to predatory practices. Hopefully, people are able to get their money back.
[Via]