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IPFS News Link • Lawsuits

Jailed FTX founder Sam Bankman-Fried turns on his celebrity endorsers including Tom Brady...


Fallen cryptocurrency wunderkind Sam Bankman-Fried, who is currently serving a 25-year prison sentence following a sweeping fraud case, has agreed to cooperate in a class-action lawsuit against celebrities who promoted his crypto exchange.  

By agreeing to cooperate with the investors, the victims will now drop their civil liability claims against the felon founder.

The celebrities include some big name sports stars including Tom Brady, Shaquille O'Neal, Stephen Curry and Shohei Ohtani.

Brady's ex-wife Gisele Bundchen and actor Larry David are also among the names accused of promoting unregistered securities for FTX and enticing investors into a Ponzi scheme.

The lawsuit claims crypto Bankman-Fried and the celebrities he recruited to endorse the firm are responsible for around $11 billion of losses to American consumers.

Many of the stars were 'ambassadors' for the trading platform, while others appeared in prime-time commercials. 

The plaintiffs hope they might be able to recover some of their losses following the  collapse of FTX in November 2022

Bankman-Fried, 32, appealed his federal conviction earlier this month after US District Court Judge Lewis Kaplan set the prison term and ordered him to pay $11 billion in forfeiture.

In return for dropping him from the civil lawsuit, Bankman-Fried would hand over all nonprivileged documents detailing his assets and his investment in artificial intelligence start-up Anthropc, an affidavit certifying his net worth as negative and documents about other defendants in the wide-ranging civil litigation.