Investors have filed a lawsuit against FTX celeb endorsers like Tom Brady, Steph Curry, and Larry David
- Investors have filed a lawsuit against celebs who promoted the defunct crypto exchange FTX.
- FTX has flamed out in dramatic fashion, declaring bankruptcy on Friday.
Investors have filed a lawsuit against celeb endorsers who once hawked FTX in the wake of the crypto exchange's sudden collapse.
The proposed class action names FTX founder Sam Bankman-Fried, as well as celebs who were paid to promote the company, including sports stars like Tom Brady, Steph Curry, and David Ortiz, as well as Hollywood heavyweight Larry David and "Shark Tank's" Kevin O'Leary.
The lawsuit claims that the defendants "made numerous misrepresentations and omissions ... in order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme."
The suit was filed on Tuesday in Miami, The Washington Post reported.
FTX, which filed for bankruptcy on Friday, had invested millions in promotions like high-profile partnerships with celebs, sponsorships including the Miami Heat's FTX Arena, and deals with finance influencers.
"I'm writing that all down to zero," O'Leary, who was both a paid spokesperson for FTX and an investor, recently told Insider in an interview. "It's not clear what can be recovered. There's a lot of allegations flying around. But frankly, I've seen this movie before. It's a difficult situation, there's no question about it. There'll be a mountain of litigation."
Several finance influencers who promoted FTX have apologized to their fans in recent days, including YouTuber Graham Stephan, Insider previously reported.
"As much as I trusted the information that I was given, I was wrong and I'm sorry," Stephan said in a video to his over 4 million subscribers. "I trusted them, but in the end their parent company was not forthcoming with all of the risks. This being one of them. This type of behavior is not something that I ever would have expected."
The suit alleges that "American consumers collectively sustained over $11 billion dollars in damages" from FTX.
FTX and representatives for Brady, Curry, Ortiz, David, and O'Leary did not immediately respond to Insider's request for comment.