Ortiz, Brady named among the defendants in the lawsuit over the FTX collapse

Former Red Sox slugger David Ortiz and quarterback Tom Brady are listed along with many other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of the cryptocurrency exchange FTX. The lawsuit was filed in the US District Court in Miami, Florida, where the Bahamas. -based FTX recently purchased the naming rights for the Miami Heat’s home arena. It alleges that plaintiff Edwin Garrison, of Oklahoma, purchased an unregistered security from FTX and financed it “with an amount of crypto assets sufficient to earn an interest in its holdings. .” Garrison confirmed that he decided to invest with FTX after being exposed to “misrepresentations and omissions” about the platform. Because Brady, Ortiz and the other listed defendants acted as brand ambassadors, the lawsuit alleges that they are liable for damages suffered by investors. Other famous defendants include supermodel Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, former NBA star Shaquille O’Neal, Jacksonville Jaguars quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-writer Larry David. FTX founder and former CEO, Sam Bankman-Fried, is also named as a defendant. customers to invest in (yielding accounts), which are offered and sold largely from the FTX Entities’ domestic base of operations here in Miami, Florida, pouring billions of dollars into the Deceptive FTX Platform to keep the entire scheme afloat,” the lawsuit states. One of the counts included in the lawsuit is an alleged civil conspiracy.” FTX Entities and Defendants made numerous misrepresentations and misrepresentations to Plaintiffs and Class Members regarding the Deceptive FTX Platform to induce trust and encourage consumers to invest in what was ultimately a Ponzi scheme, misleading customers and prospective customers with the false impression that all cryptocurrency assets held on the Deceptive FTX Platform were safe and not being invested in unregistered securities,” says the lawsuit. FTX filed for bankruptcy protection Friday, sending a tsunami-like wave through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in prices for bitcoin and other digital assets. Other crypto firms failed as a result of the FTX collapse, an event reminiscent of the 2008 financial crisis like dominoes. Just days after FTX’s collapse, the public began to feel how messy the bankruptcy case was. Users remain frustratingly in the dark about when they can get their funds back, if at all. In a court filing, FTX’s lawyer said there are more than 100,000 claims against the company and it is estimated that the number could grow to more than 1 million, mostly from customers, after the case is over. The court ordered FTX to provide at least a list of the company’s 50 largest creditors by November 18. Meanwhile, The Associated Press reports that FTX and its CEO are under investigation by the Department of Justice and the Securities and Exchange Commission to determine why there is. criminal activity or breach of security are committed. The Associated Press contributed to this report.

Former Red Sox slugger David Ortiz and quarterback Tom Brady are listed along with many other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of the FTX cryptocurrency exchange.

The suit was filed in US District Court in Miami, Florida, where Bahamas-based FTX recently purchased the naming rights to the home arena of the Miami Heat.

It alleges that plaintiff Edwin Garrison, of Oklahoma, purchased an unregistered security from FTX and financed it “with an amount of crypto assets sufficient to earn an interest in its holdings.” Garrison confirmed that he decided to invest with FTX after being exposed to “misrepresentations and omissions” about the platform.

Because Brady, Ortiz and the other listed defendants acted as brand ambassadors, the lawsuit alleges that they are liable for damages suffered by investors.

Other famous defendants include supermodel Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Udonis Haslem, Golden State Warriors player Stephen Curry and his entire team, former NBA star Shaquille O’Neal, Jacksonville Jaguars quarterback William Trevor Lawrence, Los Angeles Angels player Shohei Ohtani, tennis player Naomi Osaka and actor-comedian-writer Larry David. FTX founder and former CEO, Sam Bankman-Fried, is also named as a defendant.

“Part of the scheme employed by the FTX Entities involved using some of the biggest names in sports and entertainment—such as these Defendants—to raise funds and induce American consumers to invest in (income-producing accounts), which were offered and sold publicly. from a domestic base of operations The FTX Entities here in Miami, Florida, poured billions of dollars into the Deceptive FTX Platform to keep the entire scheme afloat,” the lawsuit says.

One of the counts included in the lawsuit is a civil conspiracy charge.

“FTX Entities and Defendants made numerous misrepresentations and misrepresentations to Plaintiffs and Class Members regarding the Deceptive FTX Platform to induce confidence and encourage consumers to invest in what was ultimately a Ponzi scheme, misleading customers and prospective customers with the false impression that all cryptocurrency assets were held in Deceptive FTX Platform is safe and not being invested in unregistered securities,” says the lawsuit.

FTX filed for bankruptcy protection Friday, sending a tsunami-like wave through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in prices for bitcoin and other digital assets. Other crypto firms failed as a result of the FTX collapse, an event reminiscent of the 2008 financial crisis like dominoes.

Just days after FTX’s collapse, the public began to feel how messy the bankruptcy case was. Users are left frustratingly in the dark about when they can get their funds back, if at all.

In a court filing, FTX’s lawyer said there are more than 100,000 claims against the company and it is estimated that the number could grow to more than 1 million, mostly from customers, after the case is over. The court ordered FTX to provide at least a list of the company’s 50 largest creditors by November 18.

Meanwhile, The Associated Press reports that FTX and its CEO are being investigated by the Department of Justice and the Securities and Exchange Commission to determine whether any criminal activity or securities violations were committed.

The Associated Press contributed to this report.

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