US crypto investors are suing FTX founder and former CEO Sam Bankman-Fried, as well as a host of celebrities, including NFL player Tom Brady and comedian Larry David, for promoting crypto exchanges. writes Agency Reuters. The lawsuit accuses them of using fraudulent methods to promote FTX.
A class action lawsuit filed Tuesday in Miami District Court by Oklahoma resident Edwin Garrison on behalf of other crypto exchange account holders alleges that yield-bearing accounts (FTX) (YBA) were purchased by investors , in order to earn interest in cryptocurrency, in reality, are unregistered securities, and therefore their sale was carried out in violation of US law.
“The deceptive FTX platform backed by FTX organizations was a veritable house of cards, a pyramid scheme where FTX organizations shuffled client funds between their opaque subsidiaries and used new investor funds raised through YBA investments and loans, to pay interest to existing ones. savers in an attempt to maintain some semblance of liquidity.” says in the lawsuit.
The plaintiffs are represented by prominent attorneys, including Adam Moskowitz and David Boies. In addition to Bankman-Fried, the lawsuit lists 11 well-known athletes and actors who “Either controlled, promoted, helped [или] actively participated in FTX trading.” FTX Trading is a Bahamas-based company that operated the crypto exchange FTX.