Tom Brady, Giselle Bundchen, Larry David and Steph Curry Caught in Class Action Lawsuit in FTX Crypto Fallout

“I’m never wrong about things like that, never,” a sneering and mocking Larry David said earlier this year in that now-infamous Super Bowl ad for investing in cryptocurrency exchange FTX.

While His field Co-creators rejected the wheel, coffee, the US Constitution, electricity, a man on the moon and more innovations in the award-winning ad, it seems David was right about the now-collapsed FTX, for all the good that came with happen to him.

Along with the likes of 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 former CEO Sam Bankman. – Fried.

“In addition to the conduct of defendant Sam Bankman-Fried as described in this indictment, some of the biggest names in sports and entertainment invested in or were brand ambassadors for FTX,” said the jury, which today filed a federal appeal in Florida by Edwin Garrison on behalf of all “American consumers” who “collectively suffered more than $11 billion in damages” from the recent FTX accident. “Some of them are pushing FTX to their social media fans and promoting consumer adoption of the Misleading FTX platform,” adds the heavy graphic action (read it here).

In Curry’s case, the NBA legend admitted in another tongue-in-cheek TV spot that he doesn’t know crypto very well. He added, looking at the camera: “It doesn’t have to be me. With FTX, I have everything I need to securely buy, sell and trade crypto.”

Maybe not so much now that he and the others have to hire a lawyer.

Frequent use by celebrities convinced consumers “to pour billions of dollars into the fraudulent FTX platform to keep the entire system going,” according to the filing by attorney Adam Moskowitz and a brigade of other attorneys. “The fraudulent FTX platform operated by the FTX entities was really a house of cards, a ponzi scheme in which the FTX entities shuffled customer funds between their opaque subsidiaries, through new investor funds raised through investments in the YBAs and loans is, to be used to pay interest on the old ones and try to maintain the appearance of liquidity,” it also says and gets to the point.

And this is where things can get really sticky for the celebs who have lent their name and image to FTX.

“Importantly, while the defendants disclosed their partnerships with the FTX companies, they never disclosed the nature, extent, and amount of compensation they personally received in exchange for promoting the fraudulent FTX platform whose SEC states has that the failure to disclose this information would constitute a violation of the anti-publicity provisions of the federal securities laws,” the notes added. “In addition, none of these defendants performed due diligence before marketing these FTX products to the public.”

Bahamas-based FTX and its cousin crypto trader Alameda Research, which were valued at more than $32 billion earlier this year, filed for Chapter 11 bankruptcy last week. The sharp collapse of the world’s third-largest crypto exchange came as Bankman-Fried and other executives failed to win more investors who had been starved of billions of dollars in losses due to doubts about the company’s business model and wealth management. It also probably didn’t help that FTX was being investigated by the FTC, DOJ and others for moving investor funds without permission.

Citing recent judgments and fines against individuals such as Kim Kardashian and former Boston Celtic Paul Pierce for failing to disclose advertising fees, the lawsuit seeks unspecified actual, direct and compensatory damages that could reach nine figures and more, based on the consumer base FTX depleted.

No doubt all the big names will hire big lawyers to get them off the hook here. Though they might have to flip through the old Rolodex a little more than usual, since famed attorney David Boies is actually helping to represent Garrison in this action. However, in the meantime, check out Larry David’s ad that everyone thought was so funny during Super Bowl 2022: