Federal Judge Dismisses FTX Lawsuit Against Celebrities

A federal judge has dismissed claims against high-profile figures like Tom Brady, Gisele Bündchen, Steph Curry, and Kevin O’Leary in a lawsuit tied to FTX’s collapse. The ruling found insufficient evidence that the celebrities knowingly participated in or understood the alleged fraud perpetrated by FTX’s former CEO, Sam Bankman-Fried.

Judge Dismisses FTX Lawsuit Against Celebrities Including Tom Brady and Steph Curry

A federal judge has dismissed claims against high-profile figures like Tom Brady, Gisele Bündchen, Steph Curry, and Kevin O’Leary in a lawsuit tied to FTX’s collapse. The ruling by Judge K. Michael Moore found insufficient evidence that the celebrities knowingly participated in or understood the alleged fraud perpetrated by FTX’s former CEO, Sam Bankman-Fried.

The lawsuit accused the defendants of promoting FTX without disclosing their financial ties to the exchange. However, the court determined that mere endorsement deals—even those involving substantial payments—did not establish legal liability for the platform’s downfall. The decision underscores the challenges of holding influencers accountable for the failures of companies they advertise.

FTX, once a major player in the crypto exchange landscape, filed for bankruptcy in November 2022 amid allegations of mismanagement and fraud. The case had been closely watched for its implications on celebrity endorsements in the volatile cryptocurrency sector.

Michelle Bond Accuses Prosecutors of ’Stealth and Deception’ in FTX Plea Deal

Michelle Bond, wife of former FTX executive Ryan Salame, has filed court documents alleging federal prosecutors employed deceptive tactics to secure her husband’s plea agreement. The May 7 filing in the U.S. District Court for the Southern District of New York claims prosecutors implied Bond’s 2022 congressional campaign WOULD avoid campaign finance charges if Salame pleaded guilty.

The case stems from Salame’s involvement with FTX, the collapsed cryptocurrency exchange. Bond’s legal team argues the government violated plea agreement terms, stating: ’The government cannot use its overwhelming bargaining advantage to coerce a plea agreement and then fail to live up to its terms.’ The filing suggests potential misconduct in the handling of the high-profile crypto case.