Stephen Curry #30 of the Golden State Warriors drives to the basket in the second quarter against Dyson Daniels #11 of the New Orleans Pelicans at Chase Center on April 12, 2024 in San Francisco, California.
Kavin Mistry | Getty Images
A Florida federal judge has dismissed most of the claims against high-profile celebrities and YouTubers who promoted the now-defunct cryptocurrency exchange FTX, including stars like Tom Brady, Gisele Bündchen, Kevin O’Leary, and Stephen Curry.
The ruling narrows the scope of a sprawling multidistrict litigation accusing them of using their fame to market a fraudulent platform.
The lawsuit stemmed from FTX’s catastrophic collapse in November 2022, which wiped out billions of dollars in customer funds and triggered investigations worldwide. The plaintiffs accused the stars of being paid millions of dollars to endorse FTX without disclosing their financial incentives, a violation of federal and state advertising laws.
In an order filed Wednesday, U.S. District Judge K. Michael Moore ruled that the plaintiffs, a group of FTX investors, failed to demonstrate that the celebrities had sufficient knowledge of FTX and CEO Sam Bankman-Fried’s misconduct to be held liable for promoting the exchange.
The judge dismissed nearly all of the claims against the “Celebrity Defendants,” which include sports stars and others. The court also cleared the “YouTuber Defendants,” including influencers who allegedly marketed FTX through social media, of most claims.
The ruling comes after a protracted legal battle in which plaintiffs alleged that the celebrities and influencers were liable for promoting unregistered securities and engaging in deceptive practices.
