Ortiz, Brady named among defendants in lawsuit over FTX collapse

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Former Red Sox slugger David Ortiz and quarterback Tom Brady are named along with a host of other athletes and celebrities in a class action lawsuit filed Tuesday over the sudden collapse of cryptocurrency exchange FTX. The lawsuit was filed in U.S. District Court in Miami, Florida, where Bahamas-based FTX had recently purchased naming rights to the Miami Heat’s home arena. It says Plaintiff Edwin Garrison of Oklahoma purchased an unregistered security from FTX and funded it “with a sufficient amount of crypto assets to earn interest on his holdings.” Garrison claims he decided to invest with FTX after being exposed to “misrepresentations and omissions” about the platform. Because Brady, Ortiz and other listed defendants acted as brand ambassadors, the lawsuit argues 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 plan employed by the FTX entities involved using some of the biggest names in sports and entertainment — like these defendants — to raise money and American consumers to invest in the (revenue-bearing accounts) , which were largely offered and sold from the domestic base of the FTX entities here in Miami, Florida, pouring billions of dollars into the Deceptive FTX platform to keep the whole scheme going,” the lawsuit states. One of the counts included in the lawsuit is a civil conspiracy charge. “The FTX Entities and Defendants made numerous misrepresentations and omissions to plaintiff and class members about the deceptive FTX platform in order to build trust and induce consumers to invest in what was ultimately a Ponzi scheme, customers and potential customers misled into the false impression that all cryptocurrency assets held on the Deceptive FTX platform were safe and secure and not invested in unregistered securities,” the lawsuit states. FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in price for bitcoin and other digital assets. Other crypto companies are going bankrupt as a result of the unraveling of FTX, events reminiscent of the domino-like collapse of the 2008 financial crisis. Just days after the collapse of FTX, the public is beginning to get a sense of how messy the bankruptcy case would be can be. Users are left frustrated in the dark about when they will get their money back, if at all. In a lawsuit, FTX’s lawyers said there have already been more than 100,000 claims against the company and that figure could grow to more than 1 million, most of them customers, once the case is closed. The court ordered FTX to provide at least a list of the company’s 50 largest creditors by November 18. Meanwhile, The Associated Press reported that FTX and its CEO are under investigation by the Department of Justice and the Securities and Exchange Commission to determine whether any criminal activity or securities offenses have been committed. The Associated Press contributed to this report.

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

The lawsuit was filed in U.S. District Court in Miami, Florida, where Bahamas-based FTX had recently purchased naming rights to the Miami Heat’s home arena.

It says plaintiff Edwin Garrison of Oklahoma bought an unregistered security from FTX and funded it “with enough crypto assets to earn interest on his holdings.” Garrison claims he decided to invest with FTX after being exposed to “misrepresentations and omissions” about the platform.

Because Brady, Ortiz and other listed defendants acted as brand ambassadors, the lawsuit argues 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 — like these defendants — to raise money and drive American consumers to invest in the ( revenue-bearing accounts), which were largely offered and sold from the domestic base of the FTX entities here in Miami, Florida, to pump billions of dollars into the Deceptive FTX platform to keep the whole scheme going,” the lawsuit states.

One of the charges in the lawsuit is a civil conspiracy charge.

“The FTX Entities and Defendants made numerous misrepresentations and omissions to plaintiff and class members about the deceptive FTX platform in order to build trust and induce consumers to invest in what was ultimately a Ponzi scheme, customers and potential customers misled into the false impression that all cryptocurrency assets held on the Deceptive FTX platform were safe and secure and not invested in unregistered securities,” the lawsuit states.

FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turmoil this year, including a sharp drop in price for bitcoin and other digital assets. Other crypto companies fail due to the unraveling of FTX, events reminiscent of the domino-like meltdowns of the 2008 financial crisis.

Just days after FTX’s collapse, the public is starting to get a sense of how messy the bankruptcy case could be. Users are left frustrated in the dark about when they will get their money back, if at all.

In a lawsuit, FTX’s lawyers said there have already been more than 100,000 claims against the company and that figure could grow to more than 1 million, most of them customers, once the case is closed. The court ordered FTX to provide at least a list of the company’s 50 largest creditors by November 18.

Meanwhile, The Associated Press reported that FTX and its CEO are under investigation by the Department of Justice and the Securities and Exchange Commission to determine whether any criminal activity or securities offenses have been committed.

The Associated Press contributed to this report.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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