A lawsuit has been filed against the Golden State Warriors and other American celebrities for promoting the now-defunct cryptocurrency exchange FTX.
Edwin Garrison, an Oklahoma resident, and others filed the lawsuit after they kept an FTX yield-bearing account filled with crypto assets to generate interest.
Several people were listed as defendants in the lawsuit, including the professional basketball team, the Golden State Warriors, NFL quarterback Tom Brady, tennis player Naomi Osaka, comedian Larry David, basketball player Steve Curry, and reality T.V. star Kim Kardashian.
Garrison claims that FTX was a “Ponzi scam” in which investor funds were transferred to affiliated firms to maintain the appearance of liquidity while attracting American investors to its yield-bearing accounts.
The U.S. Securities and Exchange Commission (SEC) and private investors have sued a number of celebrities for falsely endorsing cryptocurrencies.
In October 2022, the SEC fined reality T.V. star Kim Kardashian $1.26 million for promoting a “crypto asset security” without disclosing the amount or source of the money. Kim Kardashian received $250,000 in exchange for an Instagram post promoting EthereumMax’s EMAX tokens.
Garrison cited Kim’s case as well as a decision by the 11th U.S. Circuit Court of Appeals that allowed BitConnect cryptocurrency investors to sue anyone involved in the coin’s online promotion.
His lawsuit alleges that Bankman-Fried and the FTX promoters conspired to deceive investors and violated Florida state laws prohibiting unfair business practices and requiring securities registration.
After reports that $10 billion in customer assets were transferred from FTX to Alameda Research, FTX declared Chapter 11 bankruptcy and is being investigated by U.S. authorities.
A lawsuit has been filed against the Golden State Warriors and other American celebrities for promoting the now-defunct cryptocurrency exchange FTX.
Edwin Garrison, an Oklahoma resident, and others filed the lawsuit after they kept an FTX yield-bearing account filled with crypto assets to generate interest.
Several people were listed as defendants in the lawsuit, including the professional basketball team, the Golden State Warriors, NFL quarterback Tom Brady, tennis player Naomi Osaka, comedian Larry David, basketball player Steve Curry, and reality T.V. star Kim Kardashian.
Garrison claims that FTX was a “Ponzi scam” in which investor funds were transferred to affiliated firms to maintain the appearance of liquidity while attracting American investors to its yield-bearing accounts.
The U.S. Securities and Exchange Commission (SEC) and private investors have sued a number of celebrities for falsely endorsing cryptocurrencies.
In October 2022, the SEC fined reality T.V. star Kim Kardashian $1.26 million for promoting a “crypto asset security” without disclosing the amount or source of the money. Kim Kardashian received $250,000 in exchange for an Instagram post promoting EthereumMax’s EMAX tokens.
Garrison cited Kim’s case as well as a decision by the 11th U.S. Circuit Court of Appeals that allowed BitConnect cryptocurrency investors to sue anyone involved in the coin’s online promotion.
His lawsuit alleges that Bankman-Fried and the FTX promoters conspired to deceive investors and violated Florida state laws prohibiting unfair business practices and requiring securities registration.
After reports that $10 billion in customer assets were transferred from FTX to Alameda Research, FTX declared Chapter 11 bankruptcy and is being investigated by U.S. authorities.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tool”
