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This isn’t the first time celebrities have come under scrutiny for promoting digital currencies. Last month, the Securities and Exchange Commission announced that it had a fine Kim Kardashian $1.26 million for failing to disclose that she was paid for posting a crypto ad on her Instagram page.

The filing also names FTX founder and former CEO Sam Bankman-Fried as a defendant. The former crypto industry golden child oversaw the company until it filed for bankruptcy. It has since been reported that FTX was funneling clients’ money into an investment fund it owned.

The case was filed by Moskowitz Law Firm in conjunction with Boies Schiller Flexner LLP. They claimed that US consumers lost $11 billion when FTX fell.

“FTX were PR and marketing geniuses, and knew that such a massive Ponzi scheme, bigger than the [Bernie] Madoff Dietcould only succeed with the help and promotion of the world’s most famous, respected and loved celebrities and influencers,” class action attorney Adam Moskowitz said in a press release.

The lead plaintiff is Edwin Garrison of Oklahoma. According to Joseph Kaye of Moskowitz Law Firm, a co-counsel on the case, Garrison was trying to generate money for his 18-month-old granddaughter and lost his entire investment.

“It’s really sad,” Kaye told BuzzFeed News. “[Garrison] had a long term approach and was just trying to do well with it. And now he has completely lost all the investment. So it’s very important to him. There are others whose entire 401(k) has entered the platform and is now gone.

The lawsuit details how various celebrities were enlisted by FTX to promote the company, including the $20 million deal Brady and Bündchen signed. They were paid for in a combination of stocks – now virtually worthless – and digital currency. Bündchen has also been appointed philanthropic adviser to FTX.



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