Lawyer Behind FTX Lawsuit Says Tom Brady and Other Celebrities “Could Be Liable” for Crypto Endorsement

The lawyer behind the class action lawsuit against the now collapsed crypto trading company FTX said Wednesday that high-profile celebrities such as legendary NFL quarterback Tom Brady and billionaire businessman Mark Cuban should be held liable for violating Florida law and causing consumers to suffer more than $11 billion in damages.

Florida attorney Adam Moskowitz is representing FTX investor Edwin Garrison in a lawsuit against its founder, crypto billionaire Sam Bankman-Fried. The suit, which also targets celebrities who have promoted the platform with commercials and other endorsements, comes almost a week after the company filed for bankruptcy. Moskowitz is simultaneously representing investors in a separate case against cryptocurrency broker Voyager Digital, which filed for Chapter 11 bankruptcy in July, freezing its clients’ assets.

“We’ve been fighting Voyager, which was the third largest crypto company here in Miami for over a year. The end result was going to be that FTX was going to invest a billion dollars and give it to Voyager victims, Moskowitz told him. he told Fox News on “The Story” on Wednesday. “What happened last week? FTX bankruptcy. So now they have about $11 billion that they’ve taken from investors.”

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Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, during the Bloomberg Cryptocurrency Summit in New York, USA, on Tuesday, July 19, 2022.

Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, during the Bloomberg Cryptocurrency Summit in New York, USA, on Tuesday, July 19, 2022.
(Jeenah Moon/Bloomberg via Getty Images)

Moskowitz said the FTX lawsuit, which names Bankman-Fried, Tom Brady, Gisele Bündchen, Stephen Curry, Golden State Warriors, Shaquille O’Neal and others, seeks to hold “anyone and everyone who could be responsible” accountable for causing his clients several billion in damages.

“There are celebrities who made a lot of money promoting this product,” he said. “There is case law right to the point that unless you tell people you get paid and how much you get paid and what your incentive is, you can be liable.”

Moskowitz pointed to Kim Kardashian’s recent $1.26 million settlement with the SEC over her June 2021 endorsement of EMAX tokens, a crypto asset offered by EtherumMax, which she promoted to her supporters without disclosing mutually agreed compensation for her endorsement. .

Moskowitz noted that Kardashian, who recently launched her own private equity firm, is not the first celebrity to be disciplined by the SEC. In 2018, both boxer Floyd Mayweather Jr. and music producer DJ Khaled were charged after they allegedly failed to disclose how much each was paid to promote investments in initial coin offerings.

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Kim Kardashian has agreed to pay $1.26 million to settle charges for illegally promoting a crypto asset on social media without disclosing the payment she received for the promotion.

Kim Kardashian has agreed to pay $1.26 million to settle charges for illegally promoting a crypto asset on social media without disclosing the payment she received for the promotion.
(Evan Agostini/Invision/AP, Files)

“Floyd Mayweather was responsible. DJ Khaled was responsible. Kim Kardashian was responsible,” he said.

As for the Voyager class action lawsuit, the Coral Gables attorney alleged that Dallas Mavericks owner Mark Cuban committed “the worst of it all” by his endorsement of the now-bankrupt crypto platform.

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“The worst of all was Mark Cuban, who not only did an Instagram post, but also did roadshows,” Moskowitz said. “He Took His Dallas Mavericks Team To Promote Voyager Stock. He Said It Was The Best And Safest Investment. He Certainly Promoted The Product. He Could Be Responsible.”

the lawsuit was featured in florida because the defendants, it says, “do business in Florida and/or have intentionally taken advantage of the Florida consumer market through the promotion, marketing and sale of FTX’s YBA in Florida, which constitutes an in-state tort.” from Florida.”

Fox Business’s Greg Norman contributed to this report.

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