FTX’s viral Super Bowl ad featured multiple highly skeptical versions.
creator of my neighbor seinfeld When curb your enthusiasm One of many stars being sued for publicity
Legal experts say the celebrity’s name and wealth make it an attractive target for the company and its co-founders for investors looking to recoup some of their losses.
“Lawsuits against celebrities will generate huge amounts of money as they all settle,” he said.
Tom Brady
Photographer: Chris Gracen/Getty Images
At least three lawsuits have been filed since the FTX implosion, including one seeking to represent “thousands, if not millions, of consumers nationwide.” I’m here.
If the investor can prove that the investor failed to disclose that he or she received compensation to promote a virtual currency exchange, invested in a company, or sold unregistered securities. , celebrities can be held liable. The pending lawsuits are pending in federal courts in Miami and San Francisco.
A representative for the star did not respond to a request for comment on the lawsuit.
FTX’s sudden collapse cost US investors more than $11 billion, according to a Miami lawsuit filed on November 15. With 5 million users worldwide, the platform traded over $700 billion in cryptocurrencies last year.
“Celebrity liability largely hinges on whether the product they advertise is a security,” says people who are not involved in the FTX case and who are suing for alleged corporate abuses. Shane Seppinni said. If FTX’s yield-bearing accounts, which pay interest on cryptocurrency holdings, turn out to be securities, “the celebrities who promoted it could suffer a great loss,” he said.
Sam Bankman-Fried
Photographer: Gina Moon/Bloomberg
In determining whether a particular item constitutes a security, courts
Joseph Rotunda, executive director of the Texas Securities Commission, filed a declaration last month declaring that yield-bearing accounts are the sale of unregistered securities. It is also a violation of securities laws to promote securities without disclosing the source, nature and amount of the compensation.
On Monday, Rotunda said his office was reviewing payments received and disclosures made by celebrities.
“We’re taking a closer look at them,” he said, as part of the regulator’s broader investigation into FTX’s failures.
Larry David in an FTX Super Bowl ad
Source: FTX
Brady and Bündchen will join the company’s $20 million ad campaign in 2021, asking “FTX. They also acquired his shares in FTX Trading Ltd., according to Miami’s complaint.
ABC’s O’Leary shark tank and CNBC’s money coatwas an investor and a paid spokesperson for FTX.
David’s comic persona and quirky role in the Super Bowl ad could prove oblique enough to win the lawsuit, legal experts say.
Commercials featured him as someone skeptical of Sony’s Walkman and other inventions, such as the wheel before. “Don’t be like Larry,” warned the ad. This made FTX one of the most retweeted brands during the game, according to an investor’s attorney in the Miami lawsuit.
But the only allegation about the comedian, “is that Larry David appeared in a commercial,” said attorney Brian Levin. not.”
Stark, the SEC’s former Internet operating officer, finds it “irony” that the character David played in the ad keeps calling it “dazzling,” including FTX.
“There are enough celebrities to choose from,” he said. “I’ll probably leave him alone so the water doesn’t get muddy.”
Lawyer Demetri Bezaintes said as the fallout in FTX became more apparent, Bankman-Fried and other celebrities from the U.S. and elsewhere, including South Korea, Singapore and Japan, where many investors are based. More lawsuits are expected to be brought against the supporters. The law firm that filed the complaint in Miami filed another class action lawsuit in South Florida a week later.
This isn’t the first time celebrities have made a fuss over cryptocurrency promotions.
Kardashian agreed last month
read more
Crypto Kid had a condo for $23,000 a month.Then came the federal government Bloomberg Opinion: Matt Levine Explains Crypto Cryptocurrency firm Genesis warns it could go bankrupt without funding Former Alameda co-CEO used poker, blackjack strategy in trading
— with support from
To contact the writer of this article:
To contact the editor responsible for this article:
peter jeffrey
© 2022 Bloomberg LP All rights reserved. Used with permission.
