Lawsuit Filed Against Crypto Influencers For Endorsing Now-Defunct FTX
- 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.
Regarding the exchange’s incident, a new class action lawsuit has been filed against YouTubers who promoted FTX. In addition, the lawsuit seeks $1 billion in damages related to the Youtubers’ association with the defunct FTX cryptocurrency trading platform.
Several people have filed lawsuits because of the FTX debacle. This lawsuit follows others as it filed against high-profile individuals who promoted the cryptocurrency exchange before its bankruptcy in November of last year.
There may not have been a bigger scandal than the FTX crash in the brief but eventful history of the digital asset market. Once a renowned brand in the crypto world, 2022 ended with a slew of fraud scandals surfacing to the light of day. More narrowly, with regards to exchange and its subsidiary Alameda Research.
As the report puts it, many influencers were accused of promoting FTX and then deleting videos seeming to endorse the defunct exchange from their channels.
Immense Damage to the Industry
The lawsuit’s focal point is the influencers’ advocacy for the platform’s exchange. Moreover, it alleges that without revealing the nature of any payment or compensation, while endorsing the product. Among the people who have been sued since then include Erika Kullberg, BitBoy Ben Armstrong, and “Meet Kevin” Kevin Paffrath.
Adam Moskowitz, of the Moskowitz Law Firm, is defending the plaintiffs. On the other hand, Moskowitz is apparently also engaged in a similar action against Tom Brady and other celebrities. These famous people actively pushed the now-defunct crypto exchange.
The FTX collapse caused immense damage to the entire industry. As a result, many firms declared bankruptcy and even brought more stringent wrath from SEC.
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