FTX Lawsuit: Influencers Accused of Deceiving Followers and Causing Massive Damages

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FTX Lawsuit: Influencers Accused of Deceiving Followers and Causing Massive Damages

Who's Involved in the FTX Lawsuit?
What are the Allegations?

What about Kevin O'Leary?
Who's Representing the Plaintiffs?
- YouTube Video From Coffeezilla

FTX Lawsuit: Influencers Accused of Deceiving Followers and Causing Massive Damages

Hey there! Have you heard about the latest class-action lawsuit filed against “FTX influencers”? It’s led by Edwin Garrison who alleges that these influencers played a role in promoting a massive crypto fraud that resulted in over $1 billion in damages.

Who's Involved in the FTX Lawsuit?

The lawsuit names a bunch of YouTubers and NFT influencers, including Kevin Paffrath, Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, Tom Nash, Ben Armstrong, Erika Kullberg, and Creators Agency LLC. And if that wasn’t enough, even celebrities like Shaquille O’Neal and Tom Brady were also named!

What are the Allegations?

According to the lawsuit, FTX paid these influencers handsomely to push their brand and encourage their followers to invest, but the influencers didn’t disclose the nature and scope of their sponsorships and/or endorsement deals. They also allegedly didn’t conduct adequate due diligence.

It’s pretty wild stuff, and even Shaquille O’Neal has been caught up in it. Despite appearing nightly on TNT’s Inside the NBA, he’s allegedly been dodging papers to appear before the FTX lawsuit. However, he claims that he was just a paid spokesperson for a commercial and wasn’t heavily involved.

What about Kevin O'Leary?

Kevin O’Leary, the Shark Tank television host, also endorsed FTX and is a defendant in the lawsuit. He revealed that he received $15 million from FTX but lost it all. Yikes!

Who's Representing the Plaintiffs?

Representing the plaintiffs in the case is the Moskowitz Law Firm, and the seven plaintiffs have all bought an unregistered security from FTX in the form of a yield-bearing account. The suit alleges that the plaintiffs have incurred damages due to purchasing the unregistered security, which the defendants promoted for their own or FTX’s financial gain.
What’s the response from the influencers?

So, what do you think about all of this? It’s a crazy situation, and it’ll be interesting to see how it all plays out in court. Ben Armstrong, aka Bitboy, has even stated that he never once promoted FTX and intends to counter-sue. It’s safe to say that things are getting pretty heated!