A Florida federal judge has dismissed most of the claims against high-profile celebrities and YouTubers who promoted the now-collapsed cryptocurrency exchange, FTX. Celebrities such as Tom Brady, Gisele Bündchen, Kevin O’Leary, and Stephen Curry were among those accused of using their fame to market a fraudulent platform. The ruling, which was issued on Wednesday, significantly reduces the scope of a multidistrict litigation filed by FTX investors, who had alleged that the celebrities’ endorsements contributed to the platform’s failure.
In the decision, U.S. District Judge K. Michael Moore determined that the plaintiffs had not provided sufficient evidence to prove that the celebrities knew about FTX’s fraudulent activities or CEO Sam Bankman-Fried’s misconduct. The lawsuit stemmed from FTX’s disastrous collapse in November 2022, which led to the loss of billions of dollars and sparked worldwide investigations. The plaintiffs argued that the celebrities had been paid millions of dollars to promote FTX without revealing their financial incentives, violating federal and state advertising laws.
Judge Moore dismissed nearly all of the claims against the so-called “Celebrity Defendants,” including Shohei Ohtani, Larry David, the Golden State Warriors, Udonis Haslem, David Ortiz, and Naomi Osaka. He also cleared the “YouTuber Defendants,” influencers who allegedly marketed FTX through social media, from most of the accusations. The judge stated that the plaintiffs failed to demonstrate how the defendants’ actions directly caused harm or prove that the celebrities had knowledge of the fraud. While acknowledging that the celebrities may have been negligent, uninformed, or reckless, Moore emphasized that there was insufficient evidence to show intent to deceive or defraud investors.
The judge also dismissed related civil conspiracy claims, ruling that simply receiving payments for promotional content was not enough to hold the defendants liable. Although the ruling substantially reduced the celebrities’ legal exposure, two claims remain active: violations of state securities laws in Florida and Oklahoma, which prohibit the sale of unregistered securities.
The plaintiffs may amend their complaint and attempt to present stronger evidence connecting the celebrities to FTX’s alleged fraud. This decision comes after a lengthy legal battle in which plaintiffs sought $21 billion in damages from the celebrities and influencers.
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