Celebrity FTX Investors Roped Into $11B Lawsuit; Binance Under Investigation

2 mins
17 November 2022, 02:29 GMT+0000
Updated by Kyle Baird
17 November 2022, 02:29 GMT+0000
In Brief
  • The lawsuit includes athletes like Tom Brady, Stephen Curry, and shark tank personality Kevin O’Leary.
  • The class-action lawsuit claims that American consumers collectively sustained over $11 billion in damages.
  • Binance is under scrutiny from Congress for its possible involvement in the FTX collapse.
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The situation worsens as well-known celebrities have been roped into the FTX lawsuit while Binance is under congressional scrutiny.

Oklahoma resident Edwin Garrison has filed a class-action lawsuit against Sam Bankman-Fried, the founder of FTX. The lawsuit also held celebrities who endorsed FTX liable for investors’ losses.

Edwin Garrison filed the lawsuit with The United States Southern District Court of Florida Miami Division. The suit claims damages worth over $11 billion.

Celebrities Roped into the FTX Lawsuit

The lawsuit is filed against Tom Brady, Gisele Bundchen, Stephen Curry, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka, Lawrence Gene David, and Kevin O’Leary.

According to the FTX lawsuit, these parties promoted unregistered securities and violated Florida’s Securities and Investor Protection Act.

Are celebrities liable for investors’ loss?

The news has sparked a battle among the community if the celebrities who endorsed FTX should be held accountable for investors’ loss. 

While a portion of the community believes that investors should have personal responsibility, the other side blames the greed of celebs. Although, the decision now lies with the District Court of Miami. Overall, this lawsuit will make endorsers give more thought before finalizing a deal with brands.

Binance, under the scrutiny of Congress

While celebrities are hit with class-action lawsuits, there seems to be trouble ahead for one of the largest crypto exchanges, Binance.

Rep. Patrick McHenry, R-N.C., acknowledged to The Block that there would be some discussion about Binance’s role in the collapse of FTX in the December hearing.

The community questions why Binance is under scrutiny while Sam Bankman-Fried is currently facing no consequences.

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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.