Athlete FTX Endorsers Face Uphill Battle After Bankman-Fried Conviction

Now that FTX founder and former CEO Sam Bankman-Fried has been convicted on charges of fraud and conspiracy, the ire of the legal world turns to the celebrities — including several high-profile athletes — who endorsed the notorious bankrupt cryptocurrency exchange.

Last November, a consortium of investors sued Bankman-Fried, as well as big-name athletes Tom Brady, Shaquille O’Neal, and Stephen Curry, among others, in a class-action lawsuit alleging that the celebrities duped “unsophisticated investors” by endorsing FTX. 

Also included is legendary comedian Larry David, who starred in a Super Bowl LVI commercial for FTX that may have been financed using illegal funds. 

Brady and O’Neal are also on the long list of creditors for FTX.

While Bankman-Fried’s conviction doesn’t directly establish a central connection to the class action, Bloomberg says it will probably only help the plaintiff’s case, namely because of the investigative work already undertaken by the government to prove SBF’s guilt.

A trial has not been set for the lawsuit that is seeking an unspecified amount in damages, but The Moskowitz Law Firm — which is representing plaintiffs in the case — says class damages could be over $5 billion.

Several celebrity endorsers, including Jacksonville Jaguars quarterback Trevor Lawrence, have already settled for undisclosed amounts for their roles in the case.