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- The legal case filed against FTX and many prominent celebrities purports that the bankrupt crypto exchange breached Florida law and now wants $11 billion in monetary damages in the place of its customers.
On November 15, the legal action was filed by Moskowitz and Boies in the name of Oklahoma resident Edwin Garrison in the Southern District of Florida. The lawsuit also states that Sam Bankman-Fried allegedly used celebrity promoters and did a big scam in inappropriately trading customer funds.
The names that have been included in the lawsuit are Tom Brady, Gisele Bundchen, Stephen Curry, the Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Oritz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka, Lawrence Gene David and Kevin O’ Leary. The abovementioned names are accused of misleading customers to invest in the company and also they are answerable to the billions of dollars in damages.
According to Moskowitz, this big scam can only be carried out with the help of the biggest and most prominent marketers or celebrities. Although, it can not be predicted what is the percentage of winning in this case. “Normal people on a road who have smartphones are required to listen from somebody that they very much admire to make this judgment to go further and purchase something they haven’t heard ever.” Moskowitz further added.
The spokespersons of the supporters are not ready to comment on anything and also didn’t quickly replied to the requests for comment and couldn’t be reached.
The breach of Florida law
“A portion of the scheme hired by the FTX bodies indulged using a few of the big names in the field of sports and entertainment, like these supporters to generate funds and influence American clients to invest” in FTX’s yield-bearing accounts, which the legal action claims portrayed unlisted securities under federal and Florida law.
The complaint’s main target is to make the entire FTX US app users whose capital has been held in, the lawyer said, an attempt he called “entirely realistic,” although tough.”
“The illusory FTX Platform controlled by the FTX bodies was actually a house of cards, where the FTX bodies mixed customers’ funds between their non-transparent affiliated bodies, utilizing new investor funds gained by investments in the yield-bearing accounts and loans to give interest to the old ones and to try to keep the presence of liquidity,” the complaint reports.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
