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Tom Brady and Larry David are among those accused of defrauding investors in the FTX collapse

Former CEO of FTX Trading Sam Bankman-Fried, NFL quarterback Tom Brady, supermodel Gisele Bündchen and comedian Larry David are among the celebrity-studded list of those accused of defrauding investors who lost money on a cryptocurrency exchange Is. sudden collapse

A proposed class-action case filed in federal court in Florida late Tuesday names those four, along with other athletes and entertainers, as defendants. The all-publicized FTX, one of the world’s largest crypto trading platform exchanges before declaring bankruptcy on November 11, is now under investigation for possible securities violations.

“It is still very difficult to comprehend that just one company defrauded consumers of over $11 billion dollars from our backyard in Miami,” Adam Moskovitz, the attorney leading the class action, said in an email.

As part of a $20 million ad campaign, Brady and Bündchen announced the “FTX. You In?” According to the suit, showing them telling acquaintances to join the FTX platform.

David, the producer of “Seinfeld” and “Curb Your Enthusiasm,” appeared in an ad for FTX titled “Don’t Miss Out on Crypto,” which aired during the 2022 Super Bowl.

Other current and former athletes named in the suit are NBA star Stephen Curry; NFL quarterback William Trevor Lawrence; baseball player Shohei Ohtani; tennis player Naomi Osaka; and broadcaster and former basketball player Shaquille O’Neal. “Shark Tank” host Kevin O’Leary is also named in the complaint, which was filed in the Southern District of Florida.

Moskovitz alleged that “to maintain the appearance of liquidity,” the exchange shuffled customers’ money among affiliated entities, using new investor money and loans to pay interest on older ones. Reliability.


Former federal prosecutor explains FTX results

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“FTX were geniuses at public relations and marketing, and knew that such a massive Ponzi scheme – bigger than the Madoff scheme – could only succeed with the help and publicity of the most famous, respected and loved celebrities and influencers in the world,” ” They said.

FTX did not immediately respond to a request for comment.

Creditors to FTX will be first in line to receive the assets a bankruptcy judge deems fit to distribute as the company seeks to reorganize as part of its plan. Chapter 11 Filing, Investors in the Bahamas-based company, which raised some $2 billion in venture capital, are second.

This means FTX account holders who used the platform to trade bitcoin, ethereum and other digital currencies may have to wait years. to get their money backKashmir – if they ever do.

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