A federal judge in Florida has dismissed most of the legal claims against high-profile celebrities and YouTubers who promoted the collapsed crypto exchange FTX, a court filing revealed on Wednesday.
Notable figures such as Tom Brady, Gisele Bündchen, Steph Curry, and Kevin O’Leary were relieved of the lawsuit’s accusations, which alleged their involvement in advertising a company that defrauded customers of billions before its downfall in November 2022.
Judge K. Michael Moore determined that the investors behind the lawsuit lacked sufficient evidence to prove that these celebrities were aware of the fraudulent activities within FTX or understood the actions of Sam Bankman-Fried, the former CEO, when they agreed to promote the platform.
Despite receiving substantial payments for their endorsements without disclosing them to the public, the court deemed this insufficient to establish legal liability.
Judge Emphasizes Endorsements Not Equivalent to Liability
In his ruling, Michael Moore concluded that the plaintiffs failed to demonstrate that Brady, Gisele, Curry, or O’Leary had “actual knowledge” of the illicit activities occurring behind the scenes.
The court also dismissed most claims against the YouTuber Defendants, who were accused of promoting FTX to their extensive online following.
The lawsuit formed part of a broader legal effort linking several celebrity and influencer endorsements to the collapse of the company.
Claimants argued that these celebrities contributed to building public trust in a fraudulent platform, engaging in the promotion of unregistered securities and violating advertising laws by concealing their agreements. However, the judge rejected these claims.
Michael Moore emphasized that individuals who lacked direct insight into FTX or Bankman-Fried’s actions could not be held accountable solely for appearing in advertisements. Insufficient factual evidence was presented to connect these individuals to the fraud.