- A Florida judge dismissed most claims against celebrities like Tom Brady and Stephen Curry, citing a lack of proof they knew about FTX’s misconduct.
- The lawsuit accused stars of promoting FTX without disclosing payments, but the court found no evidence they intended to mislead investors.
- Two claims under state securities laws in Florida and Oklahoma remain, while Shaquille O’Neal privately settled with investors outside of court.
A Florida federal judge has thrown out the majority of court claims filed against various celebrities and social influencers linked to the failed crypto exchange FTX. The decision, which was made on Wednesday by U.S. District Judge K. Michael Moore, brings relief to popular figures like Tom Brady, Gisele Bündchen, Kevin O’Leary, and Stephen Curry.
The suit trims the lawsuit that had sought to hold the celebrities liable for promoting FTX prior to its fall in November 2022. FTX’s collapse at the time wiped out billions of dollars of customer money and triggered worldwide investigations into FTX’s operations. Shareholders blamed the celebrities for promoting FTX without revealing they were being paid millions for digital asset endorsements, claiming violations of national and state advertising laws.
Judge Moore ruled that the plaintiffs were unable to prove the celebrities were aware of any wrongdoing at FTX or of CEO Sam Bankman-Fried’s conduct. He stated that the evidence presented was insufficient to establish that the celebrities had knowledge of FTX’s fraudulent activities or aimed to mislead investors.
Legal Claims Reduced but Not Erased
The decision also dismissed most allegations against several well-known figures, such as Shohei Ohtani, Larry David, Udonis Haslem, David Ortiz, Naomi Osaka, and the Golden State Warriors. Likewise, the court dropped claims brought against the group referred to as the “YouTuber Defendants,” who had endorsed FTX in their online videos.
Judge Moore clarified that even though the celebrities could have been ignorant, negligent, or even negligent, that did not prove that they had intentionally defrauded the investors. He further clarified that receiving compensation for the promotional material did not make them liable for civil conspiracy and rejected the section of the lawsuit on that point as well.
Despite the dismissal of most claims, two of the claims remain pending. They are for violations of state securities law by both Florida and Oklahoma, where the sale of unregistered securities is illegal. The plaintiffs were offered a choice to file an amended complaint, but the judge indicated there needed to be clearer evidence linking the stars directly to any impropriety.
One Settlement, Many Dismissals
Among those who have already seen their settlements is one where the NBA star Shaquille O’Neal last month came to a settlement with a group of FTX investors who had charged him with facilitating the exchange’s promotion. The lawsuit had originally claimed that O’Neal and other celebrity promoters were liable for $21 billion of damages.
Brady and Bündchen, who featured in a high-profile 2022 FTX commercial, had been two of the most familiar endorsers of the exchange. Stephen Curry and the Golden State Warriors entered into endorsement deals as well, with Larry David being featured in a highly viewed Super Bowl commercial for the exchange. Plaintiffs had claimed that these individuals had assisted in the promotion of what they termed a scam platform. However, the finding of Judge Moore indicates a lack of evidence of intent or knowledge on the part of the celebrities.
“Defendants cannot be found liable for civil conspiracy for merely receiving payments and other monetary benefits in exchange for their promotional content,” said Judge Moore.
