• A new class action lawsuit has been filed against YouTubers who promoted the now-defunct FTX cryptocurrency trading platform. The lawsuit seeks $1 billion in damages related to the Youtubers’ association with FTX.
• Many influencers were accused of promoting FTX and then deleting videos seeming to endorse the defunct exchange from their channels.
• The lawsuit focuses on the influencers’ advocacy for the platform’s exchange, alleging that they did not reveal any payment or compensation received while endorsing it.
A new class action lawsuit has been filed against YouTubers who promoted the now-defunct FTX cryptocurrency trading platform. The lawsuit seeks $1 billion in damages related to the Youtubers’ association with FTX.
Many influencers were accused of promoting FTX and then deleting videos seeming to endorse the defunct exchange from their channels. These famous people actively pushed the now-defunct crypto exchange without revealing any payment or compensation received for their endorsement.
The FTX collapse caused immense damage to the entire industry, resulting in several companies declaring bankruptcy and even bringing more stringent wrath from SEC. The focal point of this lawsuit is therefore promoting an unreliable and fraudulent product without informing customers about its nature or potential risks involved.
Among those sued include Erika Kullberg, BitBoy Ben Armstrong, “Meet Kevin” Kevin Paffrath and other high profile individuals who promoted the cryptocurrency exchange before its bankruptcy in November 2020. Adam Moskowitz of Moskowitz Law Firm is defending plaintiffs against Tom Brady and other celebrities engaged in similar actions as well.
The incident at FTX highlights how important it is for crypto influencers to remain ethical when advertising products and services within this space, given that most investors rely on advice provided by such people when deciding whether to invest or not in certain projects/assets/exchanges etc.. It also shows just how far reaching one scandal can be if proper measures are not taken beforehand by both parties involved – investors and endorsers alike – so as to protect themselves from potential losses or legal repercussions later down the line.