Major Legal Victory for Celebrities in FTX Litigation
A recent ruling by a U.S. District Judge has cleared several high-profile celebrities, including Tom Brady and Stephen Curry, of most legal claims linked to the now-defunct cryptocurrency exchange, FTX. The case, a part of a broader multidistrict litigation stemming from FTX’s collapse, initially accused these public figures of promoting a fraudulent platform.
On May 8, 2025, Judge K. Michael Moore dismissed the majority of claims against the celebrities, among them Gisele Bündchen and Kevin O’Leary, stating that plaintiffs failed to prove the stars had sufficient knowledge of FTX’s internal issues or CEO Sam Bankman-Fried’s alleged misconduct. This ruling notably narrows the scope of the legal actions that have emerged since FTX filed for bankruptcy, significantly reducing the liability faced by the so-called “Celebrity Defendants,” which also includes sports figures like Shohei Ohtani, Larry David, and Naomi Osaka.
Registered under the claims were also celebrities such as Shaquille O’Neal and Trevor Lawrence, who have already settled their cases. The judge’s decision is indicative of the challenges investors face in holding celebrity promoters accountable without clear evidence of their involvement in the misleading practices of the FTX platform.
This ruling is particularly significant for Brady and Curry, both of whom were heavily associated with FTX’s marketing campaigns. Reports reveal Brady was compensated $55 million for his promotional efforts, which lasted 20 hours per year over three years. As the dust settles on FTX’s fallout, the implications of this ruling echo throughout the sports and entertainment industries, raising questions about the responsibilities and liabilities of celebrity endorsements in financial ventures.
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