FTX Celebrity Promoters Say Crypto Investors Cannot Sue Over Accounts

FTX Celebrity Promoters Say Crypto Investors Cannot Sue Over Accounts
The logo of FTX at the entrance of the FTX Arena in Miami on Nov. 12, 2022. Marco Bello/Reuters
Reuters
Updated:

Celebrities who promoted FTX, including NFL quarterback Tom Brady and comedian Larry David, said an investor lawsuit seeking damages in the wake of the cryptocurrency exchange’s collapse should be dismissed.

The proposed class action in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the United States, which required the promoters to disclose the compensation they received.