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.
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 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.
The judge dismissed nearly all of the claims against the “Celebrity Defendants,” which include Shohei Ohtani, Larry David, the Golden State Warriors, Udonis Haslem, David Ortiz and Naomi Osaka.
The court also cleared the “YouTuber Defendants,” including influencers who allegedly marketed FTX through social media, of most claims.
Moore wrote that the plaintiffs “fail to adequately plead causation” and “fail to plausibly allege Defendants’ knowledge of FTX’s fraud.” He added that while the celebrities may have been “uninformed, negligent, or even reckless,” the plaintiffs did not show they “had any knowledge of FTX’s fraud” or “had the requisite intent to deceive or defraud investors.”
The judge also cleared defendants of related civil conspiracy claims, writing that “defendants cannot be found liable for civil conspiracy for merely receiving payments and other monetary benefits in exchange for their promotional content.”
The decision significantly reduces the celebrities’ legal exposure, though two claims against them remain active: Violations of state securities laws in Florida and Oklahoma, which prohibit the sale of unregistered securities.
Plaintiffs may still amend their complaint and try again, the judge wrote, but will need to present stronger evidence directly linking the stars to FTX’s alleged wrongdoing.
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.
Brady and his ex-wife, Bündchen, were among the most prominent faces of FTX, appearing in a high-profile commercial for the exchange in 2022. Curry and the Golden State Warriors also had an endorsement deal with FTX, while David starred in a widely viewed Super Bowl commercial for the platform.
Late last month, NBA star Shaquille O’Neal settled with a group of FTX investors who accused him of enabling the failed exchange’s fraud as a celebrity promoter.
While plaintiffs had sought $21 billion in total damages from O’Neal and other promoters, the terms of his settlement were not disclosed.
