Sam Bankman-Fried to aid class action lawsuit targeting FTX celebrity endorsers

These figures stand accused of promoting unregistered securities on FTX, a charge that, if proven, could have profound implications for their legal standing.

Celebrities and FTX

Shaquille O’Neal was formally served with the FTX class-action lawsuit during an NBA game in March 2023.

The lawsuit alleges that the “FTX: I Am All In” marketing campaign, prominently featuring O’Neal, deceitfully influenced consumers to engage with FTX, culminating in financial losses following the exchange’s collapse.

Tom Brady is reported to have lost a staggering $30 million in the collapse of FTX, mostly made up of now-worthless shares that were part of his arrangement with the exchange in 2021 when he served as an “ambassador.”

Bundchen, his former spouse, also reportedly suffered losses of $18 million on defunct stock investments tied to FTX.

Larry David told The Associated Press that he had lost “a lot of money” after things went south for FTX. He also called himself an “idiot” for seeking advice from his friends who were supposedly knowledgeable about crypto and who assured him that the company was legitimate.

The investors embroiled in the litigation harbor hopes of getting back a portion of their losses incurred from the collapse of FTX. Bankman-Fried could be in a position to bolster their case against the celebrity endorsers.

If approved by a judge, their agreement will lead to the dropping of civil liabilities against Bankman-Fried now and in the future. In exchange, the ex-CEO will provide non-privileged documents detailing his assets and investments, as well as information on defendants in the civil case.