Evidence suggests “FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors,” according to the lawsuit.
Former FTX CEO Sam “SBF” Bankman-Fried and a number of celebrities who endorsed FTX have been named in a class-action lawsuit filed on Nov. 15 in Miami.
Implicated in the class-action lawsuit are celebrities, athletes and teams, including Tom Brady, Gisele Bundchen, Steph Curry, the Golden State Warriors, Shaquille O’Neal, Udonis Haslem, Larry David and all other parties who either “controlled, promoted, assisted in, and actively participated in” FTX Trading LTD and West Realm Shires Services Inc.
According to the filed court documents, Edwin Garrison, the plaintiff, purchased and funded his account with a sufficient amount of crypto assets to earn interest on his holdings but “sustained damages” in the wake of FTX’s collapse.
The lawsuit alleged that FTX attempted to destroy incriminating emails, texts and evidence of its criminal activities. However, the recovered evidence suggests that “FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.”
The lawsuit alleges that “American consumers collectively sustained over $11 billion dollars in damages.”
Related: US reportedly considering Bankman-Fried extradition for questioning
Since the collapse of FTX, many have called for the former CEO to face legal ramifications. As Cointelegraph reported, authorities in the United States have reportedly begun working with law enforcement in the Bahamas to potentially extradite SBF to the U.S. for questioning.
FTX is already under investigation in the Bahamas where its FTX Digital Markets arm, as well as many company executives — including SBF — are located. Financial authorities in Turkey have also launched an investigation into the exchange.