NFL and YouTube Celebs Settle FTX Lawsuit
- NFL quarterback Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash have settled a lawsuit over FTX promotions.
- The three celebrities are the first to settle the case, wherein multiple high-profile personalities have been named.
- The settlement terms have not been publicly revealed, as per a Bloomberg report.
- Nash and Paffrath are two of the eight YouTubers mentioned in the lawsuit, along with other athletes.
Trevor Lawrence, an American football quarterback playing in the National Football League (NFL), and YouTube influencers Kevin Paffrath and Tom Nash have settled a class-action lawsuit regarding the promotion of services provided by bankrupt crypto exchange FTX. Interestingly, the Moskowitz Law Firm is representing the plaintiffs in the case, which include multiple other celebrities as well.
According to a report from Bloomberg earlier this week, the settlement terms have not been publicly revealed, but it is true that the three high-profile celebrities have settled their case with the seven plaintiffs in the case, who are from various countries and “purchased an unregistered security from FTX in the form of a YBA [yield-bearing account],” as per the lawsuit filed in March 2023.
“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments, and compensation, nor conduct adequate (if any) due diligence,” claims the lawsuit.
It is important to mention here that multiple other celebrities have also been named in the lawsuit, but the three celebrities mentioned above, i.e., Paffrath, Nash, and Lawrence, are the first to settle the case. Some other celebrities mentioned in the lawsuit are Tom Brady, Gisele Bündchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka, and David Ortiz, all of whom had ties to the defunct crypto exchange FTX.
Additionally, Nash and Paffrath are two of the eight YouTubers mentioned in the lawsuit, with the other six being Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, and Erika Kullberg. Moreover, the talent management firm that was responsible for the marketing strategy of FTX has also been named in the lawsuit.
As reported earlier by Bitnation, the new management at the FTX crypto exchange is looking to restart the exchange under a different brand but is looking to recover $750K sent to Shaq, $300K sent to Naomi Osaka, and $2.3 million sent to Kevin O’Leary, along with other significant funds sent to high-profile celebrities.
The creditors are waiting to see if they’re under rules allowing bankrupt companies to reverse the payments. The list also includes $420K sent to the Golden State Warriors and $250K in various payments sent to the Miami Heat.