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Over the weekend, news broke that Berkeley author Michael Lewis had spent the past six months hanging out with former FTX CEO Sam Bankman-Fried, reportedly to write a book on the rise and fall of fall of Fried’s cryptocurrency empire.
As this information circulated, financial markets were reeling from the collapse of the popular exchange. For those unfamiliar with the demise of the crypto exchange, in November 11, 2022FTX filed for bankruptcy, wiping out billions of dollars of brand value, billionaire CEO Fried, and the broader cryptocurrency market.
Additionally, fears that client funds were being misused led to a run on FTX deposits, leading to an estimated $8 billion of liquidity shortfall; if you know anything about the start of the Great Depression, this is, in many ways, a microcosm of what happened to the American economy in 1929, when people frantically liquidated their assets from banks.
Details about Fried’s actions have continued to emerge in recent days, with social media exploding regarding the situation.
Instagrammer Arbitage Andy, who publishes sales, trading, cryptocurrency and global news, shared a text exchange between Fried and a Vox reporter. The caption notes: “This is all getting absurd and the longer this guy isn’t arrested or detained, the more suspicious I get. Any thoughts?”
Commenters broadly agreed that Fried should face some form of criminal legal action. Now, top celebrity names have come into play as the FTX drama unfolds.
A class action lawsuit against Fried and several famous “brand ambassadors” has been filed in the US District Court for the Southern District of Florida. The lawsuit was specifically filed on behalf of Oklahoma resident Edwin Garrison.
fox business reports that, according to a 41-page court document, the lawsuit names a variety of high-profile FTX advocates, including “Sam Bankman-Fried, Tom Brady, Gisele Bündchen, 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.”
It seeks to hold them “liable for the many billions of dollars in damages they caused Plaintiff and the Classes and compel Defendants to make amends.”
The lawsuit, according to Fox’s report, goes on to describe these known public figures as “parties who controlled, promoted, aided, and actively participated in FTX Trading and FTX US (collectively, the “FTX Entities”), offer and sale of securities not registered in the form of profitable accounts (YBA) to residents of the United States”.
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There is plenty of evidence of celebrity support for Fried and his brand.
Brady, for example, previously said market clock“This is an incredibly exciting time in the crypto world and Sam and the groundbreaking team at FTX continue to open my eyes to the endless possibilities.”
At this time, it is unknown if any legal action will be taken outside of the class action lawsuit against the various celebrities associated with FTX.
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What do you think about the current situation of FTX?
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