Sam Bankman-Fried, founder and former CEO of FTX, as well as roughly a dozen of the embattled exchange’s celebrity endorsers, are the subject of a class action lawsuit filed by FTX users.

See related article: Who is exposed to FTX? A running compilation on a rapidly moving target

Fast facts

  • The lawsuit alleges that FTX took “advantage of unsophisticated investors from across the country” and owes American investors over US$11 billion in damages.
  • Prominent celebrities which the lawsuit claims “vociferously” promoted FTX include basketball stars Stephen Curry and Shaquille O’Neal, the recently divorced Tom Brady and Gisele Bünchen, and four-time tennis grand slam champion and former women’s world No. 1 Naomi Osaka. 
  • The lawsuit claims FTX to be a “deceptive” platform and “made numerous misrepresentations and omissions,” along with the named celebrity defendants. 
  • The lawsuit was brought by Oklahoma resident Edwin Garrison, an FTX user, and was filed by attorneys from the Moskowitz Law Firm and Boies Schiller Flexner LLP. 
  • Among other legal pressures that SBF is feeling, another is from the esports organization Team SoloMid, otherwise known as TSM FTX, saying they are “consulting legal counsel” regarding the bankruptcy of their most significant sponsor. 
  • FTX and its related businesses could have more than 1 million creditors, it was revealed through bankruptcy court documents filed on Monday.

See related article: Crypto exchanges see record-high week of BTC outflows, following FTX saga