FTX Founder and Superstar Backers Sued Amid Crypto Collapse

The grievance, which was filed on 15 November in Florida federal district courtroom on behalf of FTX customers, names these celebrities and others alongside founder and former CEO Sam Bankman-Fried.

The lawsuit alleges that the defendants every “both managed, promoted, assisted in, [or] actively participated in FTX Buying and selling” to encourage funding within the platform, which the swimsuit refers to as a “Ponzi scheme”.

Alleging that defendants stand to lose $11 billion from FTX’s collapse, the swimsuit seeks unspecified financial damages.

FTX filed for Chapter 11 bankruptcy within the US on 11 November. Bankman-Fried resigned as CEO on the identical day, following per week of turmoil thought to be the most important collapse within the crypto sphere up to now because the platform’s customers rushed to withdraw greater than $6 billion inside 72 hours. Rival Binance deserted a proposed rescue deal.

Lots of the firm’s movie star advocates have since sought to distance themselves from the model, with Brady deleting a lot of tweets tagging Bankman-Fried and the Miami Warmth basketball workforce eradicating the FTX emblem from the roof of its residence courtroom.