FTX lawsuit: US judge dismisses claims against Tom Brady, Gisele Bundchen, Kevin O'Leary, Stephen Curry and others

A US judge has dismissed most of the claims against several high-profile celebrities and YouTubers who promoted the cryptocurrency exchange FTX, which is no longer in use. This includes high-profile celebrities such as Tom Brady , Gisele Bundchen , Kevin O’Leary , and Stephen Curry . The ruling reduces the scope of a large legal action accusing them of using their fame to market a fraudulent platform. In an order filed recently, US District Judge K Michael Moore stated that the plaintiffs, a group of FTX investors, did not demonstrate that the celebrities had sufficient knowledge of FTX and CEO Sam Bankman-Fried ’s misconduct to be held liable for promoting the exchange.

The judge dismissed nearly all of the claims against the “Celebrity Defendants,” which included Shohei Ohtani , Larry David , the NBA team Golden State Warriors, Udonis Haslem, David Ortiz, and Naomi Osaka . The court has also cleared the “YouTuber Defendants,” including influencers who allegedly marketed FTX through social media.

The lawsuit arose from FTX’s collapse in November 2022, which caused billions of dollars in customer losses and led to investigations worldwide. The plaintiffs alleged that the stars were paid millions of dollars to endorse FTX without disclosing their financial incentives, a violation of federal and state advertising laws.


What the US judge said about dismissing the claims against celebrities

Judge Moore dismissed most claims against the celebrity promoters in the FTX lawsuit , ruling that the plaintiffs did not adequately plead causation or show that the defendants knew of FTX’s fraud. He also rejected the civil conspiracy allegations, noting that merely receiving payment for promotional content does not establish liability.

However, only two charges remain: alleged violations of state securities laws in Florida and Oklahoma for selling unregistered securities. The plaintiffs may amend their complaint, but will need stronger evidence linking the celebrities to FTX’s wrongdoing.

This decision follows a lawsuit accusing various athletes, celebrities and influencers of promoting FTX’s unregistered securities. Meanwhile, Shaquille O’Neal reached a private settlement with a group of FTX investors late last month.