Ortiz, Brady named among the defendants in the FTX collapse lawsuit

Former Red Sox bat David Ortiz and quarterback Tom Brady are listed along with scores of other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of cryptocurrency exchange FTX. The lawsuit was filed in U.S. District Court in Miami, Fla. The Bahamas-based FTX had recently acquired naming rights to the Miami Heat’s home 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 that he chose to invest in FTX after being subjected to “misrepresentations and omissions” via the platform. Because Brady, Ortiz and other named defendants acted as brand ambassadors, the lawsuit claims they are liable for damages suffered by investors. Other famous defendants include supermodel Gisele Bundchen , Shark Tank investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, former NBA star Shaquille O’Neal, Jacksonville Jaguars quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-author Larry David The founder and former CEO of FTX , Sam Bankman-Fried, is also named as accused of investing consumers in the (return-producing accounts) largely offered and sold by the domestic operating base of FTX entities here in Miami, Florida, thereby dumping billions of dollars into the misleading FTX platform to keep the entire system alive,” the lawsuit states. One of the charges included in the lawsuit is allegations of civil conspiracy. “The FTX Entities and Defendants made numerous misrepresentations and omissions to the Plaintiffs and Group Members about the deceptive FTX platform in order to instill confidence and lure consumers into investing in what was ultimately a Ponzi scheme , and misleading 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 reads. FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in the price of bitcoin and other digital assets. Other crypto firms fail to unravel FTX, events reminiscent of the domino-like meltdowns of the 2008 financial crisis. Just days after FTX’s collapse, the public is beginning to get a sense of just how messy the bankruptcy case could be. Users are left frustratingly in the dark about when, if ever, they might be able to get their money back. In a court filing, FTX’s lawyers said there were already more than 100,000 lawsuits against the company and estimated the number could grow to more than 1 million, most of them customers, once the case is settled. The court ordered FTX to provide at least a list of the company’s top 50 creditors by Nov. 18. Meanwhile, The Associated Press reported that FTX and its CEO are under investigation by the Justice Department and the Securities and Exchange Commission to determine whether any criminal activity or securities crimes have been committed. The Associated Press contributed to this report.

Former Red Sox bat David Ortiz and quarterback Tom Brady are listed along with scores of other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of cryptocurrency exchange FTX.

That legal action was filed in US District Court in Miami, Florida, where Bahamas-based FTX recently acquired the naming rights to the Miami Heat’s home 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 claims he decided to invest in FTX after being exposed to “misrepresentations and omissions” about the platform.

Because Brady, Ortiz, and other listed defendants acted as brand ambassadors, the lawsuit alleges that they are liable for damages suffered by investors.

Other famous defendants include supermodel Gisele Bundchen, Shark Tank investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, former NBA star Shaquille O’Neal, Jacksonville Jaguars -Quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-author Larry David. FTX founder and former CEO Sam Bankman-Fried is also named as a defendant.

“Part of the plan employed by the FTX entities was to use some of the biggest names in sports and entertainment — like these defendants — to raise funds and get American consumers to invest in the (return-bearing accounts) that have been offered and sold large by the domestic base of operations of the FTX entities here in Miami, Florida and are pouring billions of dollars into the Deceptive FTX platform to keep the entire system alive,” the lawsuit reads .

One of the charges in the suit is allegations of civil conspiracy.

“The FTX Entities and Defendants made numerous misrepresentations and omissions to the Plaintiffs and Group Members about the deceptive FTX platform in order to instill confidence and lure consumers into investing in what was ultimately a Ponzi scheme , and misleading 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 reads.

FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in the price of bitcoin and other digital assets. Other crypto firms fail in the wake of FTX’s dissolution, events reminiscent of the domino-like meltdowns of the 2008 financial crisis.

Just days after FTX’s collapse, the public is beginning to get a sense of just how messy the bankruptcy case could be. Users are left frustratingly in the dark about when, if ever, they might be able to get their money back.

In a court filing, FTX’s lawyers said there were already more than 100,000 lawsuits against the company and estimated the number could grow to more than 1 million, most of them customers, once the case is settled. The court ordered FTX to provide at least a list of the company’s top 50 creditors by Nov. 18.

Meanwhile, The Associated Press reported that FTX and its CEO are under investigation by the Justice Department and the Securities and Exchange Commission to determine whether criminal activity or securities crimes have been committed.

The Associated Press contributed to this report.

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