Tom Brady, Gisele Bündchen Among Celebrities Sued Against Crypto Firm FTX

Tom Brady, Gisele

Tom Brady, Gisele

George Pimentel/Getty Tom Brady, Gisele Bündchen

Tom Brady and ex-wife Gisele Bündchen are among a list of celebrities who have been named as defendants in a class-action lawsuit against bankrupt cryptocurrency firm FTX.

The lawsuit, filed Tuesday by an investor, claims that by supporting the company, the former couple — along with Naomi Osaka, Steph Curry, Shaquille O’Neal, Larry David and others — brought credibility to the company, according to the Associated Press .

“Part of the scheme employed by the FTX Entities involved using some of the biggest names in sports and entertainment – ​​such as these Defendants – to raise money and lure American consumers into investing… by pouring billions of dollars into the deceptive platform FTX to keep the entire plan afloat,” the lawsuit said.

The lawsuit comes less than a week after the Bahamian-based company filed for bankruptcy protection after racking up billions of dollars in losses, according to the AP. Its founder, Sam Bankman-Fried, is facing investigations by state and federal authorities.

A representative for Brady and Bündchen did not immediately respond to PEOPLE’s request for comment.

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In addition to relying on celebrity testimonials, the company also had the naming rights to Miami’s FTX Arena.

A Miami Heat representative told ESPN on Friday that the signage would be removed from the arena in the near future.

“Reports on FTX and its affiliates are extremely disappointing,” the county and the team said in a joint statement. “Miami-Dade County and the Miami HEAT are taking immediate action to terminate our business relationship with FTX. We will work together to find a new naming rights partner for the arena.”

FTX also had previous sponsorship deals with the Golden State Warriors and Washington Wizards, as well as naming rights to a Formula 1 racing team, according to ESPN.

Celebrity endorsements for up-and-coming cryptocurrency companies have not been without controversy.

Stephen Curry attends 2022 ESPYs at Dolby Theater on July 20, 2022 in Hollywood, California.

Stephen Curry attends 2022 ESPYs at Dolby Theater on July 20, 2022 in Hollywood, California.

Momodu Mansaray/WireImage

Last month, Kim Kardashian agreed to settle US Securities and Exchange Commission (SEC) charges “for advertising a cryptocurrency stock offered and sold by EthereumMax on social media without disclosing the payment she received for the promotion.” .

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The SEC announced the charges Oct. 3 in an official statement and said the SKIMS founder, 42, “agreed to settle the charges, pay $1.26 million in penalties, disbursement and interest, and cooperate with the ongoing Commission investigations” without acknowledging or denying the SEC’s findings.

SEC Chairman Gary Gensler said in a statement that Kardashian’s case “is a reminder that, when celebrities or influencers endorse investment opportunities, including cryptocurrency stocks, it doesn’t mean those investment products are right for everyone.” investors”.

“We encourage investors to consider the potential risks and opportunities of an investment in light of their financial goals,” he said.

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