Not funny: Larry David, Tom Brady and Naomi Osaka sued for promoting FTX
15:57, 17 November 2022
Professional sport stars including Tom Brady, Naomi Osaka and Stephen Curry, along with comedian Larry David, have been named as defendants in a class-action lawsuit against failed crypto exchange FTX.
The suit argues that the stars used their status to promote the firm’s failed business model. FTX founder and former CEO Sam Bankman-Fried is also being sued, according to reports by Reuters and Cointelegraph.
FTX, the cryptocurrency derivatives exchange, made a Chapter 11 bankruptcy filing on 11 November 2022.
Brady, a National Football League (NFL) quarterback for the Tampa Bay Buccaneers, was a brand ambassador for FTX.
Curry, three-time National Basketball Association (NBA) champion and two-time NBA Most Valuable Player, was also a global ambassador and shareholder of FTX. Curry plays for NBA team the Golden State Warriors, which is also named in the writ.
Osaka, the four-time Grand Slam women’s singles tennis champion, was a global ambassador for FTX, and held an equity stake in the company.
David, co-creator of Seinfeld and creator of Curb Your Enthusiasm, was the star of a Super Bowl ad for FTX.
The Super Bowl is the annual championship game of the NFL, and took place this year (2022) on 13 February. The minute-long FTX ad which aired during the broadcast saw David playing the part of the crypto company’s “anti-sponsor”.
BTC to USD
Under investigation
The lawsuit was filed on 15 November by Adam Moskowitz, a class-action lawyer, in the southern district of Florida.
He alleges the stars brought instant credibility to the crypto platform and are therefore just as culpable as Bankman-Fried.
The lawsuit states: “Part of the scheme employed by the FTX Entities involved utilising some of the biggest names in sports and entertainment – like these defendants – to raise funds and drive American consumers to invest ... pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat.”
FTX is under investigation by US state and federal authorities for allegedly investing depositors’ funds in ventures without their approval.
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