Former NFL star Tom Brady is one of a dozen professional athletes and celebrities facing a lawsuit for their involvement in the failed FTX cryptocurrency exchange which went bankrupt last year. And it sounds like the case against the celebrities just got an important new witness.
According to a report from Business Insider, former FTX chief regulatory officer Dan Friedberg has agreed to cooperate in the case against Brady, former NBA superstar Shaquille O’Neal, and other celebrities. Friedberg was a defendant in the original complaint but according to Business Insider, he has now agreed to cooperate with plaintiffs in exchange for being freed from liability.
The 12 defendants named in the lawsuit are Brady, his ex-wife Gisele Bündchen, NBA superstar Steph Curry, comedian Larry David, the Golden State Warriors, NBA player Udonis Haslem, Jacksonville Jaguars quarterback Trevor Lawrence, Los Angeles Angels star Shohei Ohtani, Shark Tank star Kevin O’Leary, O’Neal, former MLB star David Ortiz, and tennis superstar Naomi Osaka.
The complaint alleges that the defendants all promoted unregistered securities by serving as brand ambassadors for FTX. The suit claims that under Florida law, as a result of their promotion of the cryptocurrencies, the defendants are liable for the losses that customers suffered when FTX-listed cryptocurrencies tanked in value.
The plaintiffs are seeking billions of dollars worth of damages.
