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Former FTX CEO Now Cooperating In $11 Billion Crypto Lawsuit Against Steph Curry, Shaquille O’Neal & Others

By CultureBanx Team

  • FTX founder Sam Bankman Fried has agreed to cooperate in the $11B class action lawsuit against Shaquille O’Neal, Steph Curry, Tom Brady and others investors
  • In January 2023, FTX raised $400M in a Series C funding round, valuing the company at $32B

The $32 billion collapse of cryptocurrency exchange FTX has caught a couple of current and former athletes in its crosshairs. Now, FTX founder Sam Bankman Fried has agreed to cooperate in the $11 billion class action lawsuit against Shaquille O’Neal, Steph Curry, Tom Brady and others investors, according to Bloomberg. This begs the question; should these sports celebrities who brought instant credibility to FTX, be held just as culpable as the company’s itself?

Why This Matters: Back in January 2023, FTX raised $400 million in a Series C funding round, valuing the company at $32 billion. Clearly, things have shifted quickly with the platforms collapse and litany of litigations. This lawsuit is claiming that the athletes celebrity status made them culpable for promoting the third-largest cryptocurrency exchange, FTX’s, failed business model.

Its commercials featured Brady, the star quarterback of the Tampa Bay Buccaneers, former basketball players Shaquille O’Neal, current NBA All-Star Stephen Curry, and tennis player Naomi Osaka. Former NBA Player Udonis Haslem along with the Golden State Warriors were also included in the lawsuit.

“Part of the scheme employed by the FTX Entities involved utilizing some of the biggest names in sports and entertainment—like these Defendants—to raise funds and drive American consumers to invest … pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat,” the lawsuit said.

Class-action attorney Adam Moskowitz pointed to previous cases where the U.S. government fined celebrities Kim Kardashian and Floyd Mayweather for promoting crypto. For now, the defunct crypto exchange FTX stated it expects 98% of its creditors to receive approximately 118% of the amount of their allowed claims.

What’s Next: The FTX collapse led to a cascade of legal actions, culminating in the sentencing of Bankman-Fried to 25 years in prison for his role in defrauding customers of the exchange. If approved by a judge, this agreement with prosecutors will lead to the dropping of civil liabilities against Bankman-Fried now and in the future. In exchange, the ex-CEO will provide non-privileged documents detailing his assets and investments, as well as information on defendants in the civil case.

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