While His field Co-creators rejected the wheel, coffee, the US Constitution, electricity, a man on the moon and more innovations in the much-lauded commercial, looks like David was right about the now-collapsed FTX, good as it will be do him.
Along with people like Tom Brady, Gisele Bundchen, Stephen Curry and the Golden State Warriors, Shaquille O’Neal and Naomi Osaka, David is now a defendant in a class action lawsuit against the now-hollow FTX and its ex-CEO Sam Bankman-Fried.
“In addition to the conduct of defendant Sam Bankman-Fried as described in this complaint, some of the biggest names in sports and entertainment have either invested in FTX or been brand ambassadors for the company,” the court case filed in federal court in Florida today read Edwin Garrison on behalf of all “American consumers” who “collectively suffered over $11 billion in damages” from the recent FTX crash. “Some of them have been hyping FTX to their social media fans and driving retail customer adoption of the Deceptive FTX platform,” the class-action lawsuit adds with strong graphics (read it here).
In the case of curry, the NBA Legende admitted in another tongue-in-cheek TV spot that he’s not that knowledgeable about crypto. He added, looking at the camera: “It doesn’t have to be me. With FTX I have everything I need to buy, sell and trade crypto safely.”
Maybe not so much now that he and the others have to sue each other.
Heavy celebrity use convinced consumers “to pour billions of dollars into the fraudulent FTX platform to keep the whole system running,” according to the filing by attorney Adam Moskowitz and a brigade of other attorneys. “The deceptive FTX platform maintained by the FTX entities was really a house of cards, a ponzi scheme in which the FTX entities shuffled client funds between their opaque affiliated entities and used new investor funds raised through investments in the YBAs and loans to pay interest old and try to maintain the appearance of liquidity,” it also says, getting to the bigger point.
And this is where things could actually get dicey for the celebs who have given FTX their name and image.
“Importantly, although the Defendants have disclosed their partnerships with the FTX entities, they have never disclosed the nature, extent and amount of compensation they personally received in exchange for promoting the deceptive FTX platform, what the SEC has declared a failure to disclose that information would constitute a violation of the anti-publicity provisions of the federal securities laws,” the sweeping filing notes read. “Additionally, none of these defendants conducted due diligence prior to marketing these FTX products to the public.”
Bahamas-based FTX and its cousin crypto trader Alameda Research, which was valued at over $32 billion earlier this year, filed for Chapter 11 bankruptcy last week. The hard crash of the world’s third-largest crypto exchange came as Bankman-Fried and other executives failed to attract more investors to help starve billions of dollars in losses over doubts about the company’s business model and asset management. It also likely didn’t help that FTX is under investigation by the FTC, DOJ and others for moving investors’ money without permission.
Citing recent judgments and fines against such Kim Kardashian and ex-Boston Celtic Paul Pierce for failing to disclose endorsement damages, the lawsuit seeks unspecified actual, direct and compensatory damages that could amount to nine figures and more based on the consumer base from which FTX originated.
No doubt all the big names will hire big lawyers to help them get out of here. However, as celebrity lawyers, they may have to sift through the old Rolodex a little more than usual David Boyes actually supports representing Garrison in this action. Still, in the meantime, check out this Larry David ad that everyone found so amusing during Super Bowl 2022: