Celebrities settle FTX sponsorship lawsuit

Three celebrities have settled lawsuits related to endorsements signed by failed cryptocurrency exchange FTX before its collapse last year.

Jacksonville Jaguars NFL quarterback Trevor Lawrence has reportedly settled a lawsuit accusing him of misleading FTX investors for an undisclosed amount. YouTubers Tom Nash and Kevin Paffrath also reached an agreement, which was not disclosed.

These incidents were first reported by Bloomberg News.

Before FTX collapsed, Lawrence signed an endorsement agreement with FTX subsidiary Blockfolio in 2021.according to a document File a lawsuit in U.S. Bankruptcy Court On August 31, Lawrence received $205,555.35 from the company.

At that time, Sina Nader, then COO of FTX, told Decrypt The endorsement from Lawrence and other celebrities helped officially break the taboo around cryptocurrencies.

“When it comes to my cryptocurrency portfolio, I want to have a long-term partner in this space that I can trust,” Lawrence said of the Blockfolio trade. The Athletic has not commented on the deal or the Bloomberg report.

According to Nash, a well-known YouTube star with 289,000 subscribers, FTX also pays him to provide endorsement services for the company. class action lawsuit present In March, Moskowitz Law Firm filed charges against him and other influential individuals.

According to the lawsuit, after FTX collapsed, Nash and other influencers removed any content promoting the company or its disgraced founder Sam Bankman-Fried from their channels.

Nash, an Australian citizen, initially did not respond to the lawsuit, prompting Moskowitz to ask a federal judge to allow them to serve the lawsuit. via tweet.

Paffrath, another influencer whose YouTube channel “Meet Kevin” has 1.88 million subscribers, admitted in a statement Video of November 17, 2022 The project was previously sponsored by FTX, which he calls a “scar” that he regrets.

in a second video On March 16, the day after being included in the Moskowitz class action lawsuit, Pavlat reiterated his accusations of fraud against SBF. He believes it is “ridiculous” to think that influencers were responsible for FTX’s fraud losses.

The three were part of a long list of celebrities that FTX worked with before their deaths.Others facing legal action with ties to the trade include former NFL quarterback Tom Brady and his ex-wife Gisele Bundchenformer NBA player Shaquille O’Nealand tennis stars Naomi Osaka.

News of the transactions comes after FTX suffered a cyberattack that temporarily shut down an online portal for former customers to submit refund requests.Meanwhile, a federal judge Authorize FTX As part of bankruptcy proceedings, sales of $3.4 billion worth of Solana, Ethereum, Bitcoin and other assets began.

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