A federal judge has dropped the majority of legal claims filed against several celebrities who once promoted the cryptocurrency platform FTX.
The decision came on May 7 from US District Judge K. Michael Moore.
He ruled that the group of investors suing the celebrities did not provide enough proof that these public figures knew anything about FTX’s wrongdoing before the company collapsed.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Defi 2.0? (Explained with Animations)
The lawsuit originally named several celebrities, including NFL quarterback Tom Brady, NBA star Stephen Curry, tennis player Naomi Osaka, TV personality Kevin O’Leary, comedian Larry David, and the Golden State Warriors basketball team.
They were all featured in FTX advertisements or promotions before the company went bankrupt in late 2022.
Judge Moore stated, “While this behavior demonstrates that defendants were uninformed, negligent, or even reckless, it does not demonstrate that defendants had any knowledge of FTX’s fraud, nor that they had the requisite intent to deceive or defraud investors”.
That said, not all legal risks are off the table. The judge said investors can revise their claims and file again. Also, one part of the lawsuit will continue—specifically, the accusation that the celebrities helped promote investment products that were not properly registered with regulators.
Meanwhile, Changpeng “CZ” Zhao recently confirmed that he has asked US President Donald Trump for a pardon. What prompted his decision? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
