Business Maverick: From Tom Brady to Shaq, FTX’s Celebrity Promoters May Be On the Hook for Damages

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FTX’s viral Super Bowl ad featured multiple versions of a deeply skeptical Larry David. In light of the cryptocurrency exchange’s collapse, his fellow celebrities might have done well to heed his advice.

is among the slew of stars being sued for promoting FTX’s services and products. The lawsuits allege they lured unsophisticated investors into the debacle.

At least three lawsuits have been filed since FTX’s implosion, including one that seeks to represent “thousands, if not millions, of consumers nationwide.” Tom Brady, Gisele Bundchen, Stephen Curry, Shaquille O’Neal and businessman and TV personality Kevin O’Leary are also among the defendants. The Texas State Securities Board’s director of enforcement, Joseph Rotunda, filed a declaration last month that the yield-bearing accounts are an offering of unregistered securities. And promoting securities without disclosing the source, nature or amount of compensation would violate securities law.On Monday, Rotunda said his office was scrutinizing the payments the celebrities received and any disclosures made.

 

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