The FTX debacle rocks the worlds of sports, business and entertainment.
The cryptocurrency exchange, which filed for Chapter 11 bankruptcy on November 11, was a platform with many star ambassadors.
Sam Bankman Freed, including NFL star Tom Brady, his ex-wife supermodel Gisele Bündchen, NBA stars Stephen Curry and Shaquille O’Neal, and businessman Kevin O’Leary, aka “Mr. Wonderful.” Some people supported the company founded by
Brady and Bündchen appeared in an FTX ad to promote cryptocurrency.
But a sudden collapse of the platform risks swallowing the savings of hundreds of thousands of retail and institutional investors. A class action lawsuit has been filed against “all parties who facilitated, supported, and actively participated in
Lawsuits filed in Florida include Bankman-Fried, Brady, Bündchen, Curry, O’Neill, Udonis Haslem, David Ortiz, Trevor Lawrence, baseball star Shohei Ohtani, tennis star Naomi Osaka, and “Signs next door”. Feld” creator Larry David, O’Leary.
“The FTX entity collapsed, with over $30 billion in value evaporated almost overnight, and the FTX entity found itself filing for Chapter 11 emergency bankruptcy filing in Delaware,” the lawsuit said. Stated.
“The fraudulent FTX platform maintained by the FTX entity is truly Trump’s house, where the FTX entity shuffles customer funds between opaque affiliated entities and attracts new investors through YBA investments and loans. try to maintain the look of the old, using the funds of Liquidity.”
Plaintiffs allege that “part of the scheme employed by the FTX entity is to use the biggest names in sports and entertainment, like these defendants, to raise money and encourage American consumers to invest in YBA.” The domestic operations of the FTX entity here in Miami, Florida have poured billions of dollars into the fraudulent FTX platform to keep the whole scheme going.”
TheStreet was unable to contact the defendants’ attorneys.
FTX’s bankruptcy, which filed for Chapter 11 bankruptcy on November 11, was due to a lack of liquidity when clients tried to withdraw funds from the platform a few days ago. The lack of liquidity is the result of the FTX founder reportedly moving $10 billion of his client funds from his FTX to his cryptocurrency trading platform, Alameda Research, Reuters said. “Until this week he held a senior position at FTX,” citing two sources.
FTX faces a $1.7 billion shortfall, one source told Reuters, while another said it was between $1 billion and $2 billion short.
According to the news outlet, FTX’s financials also showed there was a “backdoor” in the book created with “custom-made software.” described as a possible method.
However, Bankman-Fried denied the existence of a “back door”.
Bankman-Fried, who stepped down as CEO on November 12, was once hailed as the sector’s savior during last summer’s liquidity crisis.
The complaint against FTX and the platform’s celebrities has been filed by prominent attorneys Adam Moskowitz and David Boies on behalf of FTX customer Edwin Garrison.
Moskowitz, who is also representing the nationwide class action lawsuit against billionaire Mark Cuban and founder Steven Ehrlich, said: CEO of Voyager Digital, a bankrupt cryptocurrency lender.
“FTX is a PR and marketing genius and the success of a Ponzi scheme larger than the Madoff scheme requires the help and promotion of some of the world’s most famous, respected and loved celebrities and influencers. I knew I couldn’t succeed without it.”
https://www.thestreet.com/investing/cryptocurrency/ftx-collapse-tom-brady-steph-curry-and-mr-wonderful-are-in-big-trouble FTX Collapse: Tom Brady, Stephen Curry, and ‘Mr. Wonderful’ In Big Trouble