In light of SBF’s generous donations to politicians and the media, I feared it might emerge from this catastrophe. Despite its harsh connections, SBF has been charged with 8 counts. The South American District of New York has accused SBF of cable. fraud and conspiracy to embezzle consumer funds. The crypto prodigy FTX arrested Monday in the Bahamas and brought before a Nassau court the next day.
A lawsuit, seeking legal action, filed through Edwin Garrison, an FTX investor. Adam Moskowitz and the legendary lawyer David Boies constitute the plaintiff. The two litigants recently worked together on a lawsuit against Voyager, a cryptocurrency exchange that filed for protection against bankruptcy.
According to SBF, in his many interviews, the once-wealthy alleged scammer said he had little money. While this is disputed, lawyers for wealthy sports stars and celebrities who were paid handsomely to endorse and advertise the FTX platform and its cryptocurrency offering, adding the FTT coin.
The lawsuit names big names, such as basketball stars Shaquille O’Neal and Stephen Curry and Shark Tank investor and host Kevin O’Leary, also known as Mr. Shark Leary. that much of the alleged scheme, according to the lawsuit, concerned bragging about stars vouching for FTX products. Sports figures and celebrity sponsors will likely be hit in lengthy and costly lawsuits.
Tampa Bay Buccaneers quarterback Tom Brady and his ex-wife Gisele Bundchen, comedian Larry David, co-creator of Seinfeld and star of Curb Your Enthusiasm, are also accused of misleading investors by failing to disclose the amount of compensation, their role in promoting the corporation and its offerings, and failed to do their due diligence before extolling the virtues of the coins that were sold to investors. This would possibly constitute a violation of securities laws. This is murky territory, as not all cryptocurrencies are securities and therefore may not fall under certain securities laws.
Udonis Haslem, forward for the Miami Heat; David Ortiz, MLB Hall of Famer; Jacksonville Jaguars quarterback Trevor Lawrence; Los Angeles Angels Shohei Ohtani and tennis star Naomi Osaka were named parties to the lawsuit.
In addition to serving as pitchers and women, in the lawsuit, Brady and Bundchen accepted stakes in FTX and appeared on the crypto platform’s “FTX: You In?” ad crusade. in 2021.
Separately, boxer Floyd Mayweather, Kim Kardashian, former NBA player Paul Pierce, music maker DJ Khaled and Dallas Mavericks owner Mark Cuban have been in unrelated crypto promotions and promotions.
In early 2022, sports stars, politicians and other prominent figures asked to be paid in virtual assets. They noted that if you get paid in U. S. dollars, as inflation rises, the price of your paycheck goes down.
Green Bay Packers quarterback Aaron Rodgers had announced in the past that he was looking to get his bitcoin compensation in early November. At the time, the coin was worth more than $60,000; It is now trading at around $17,000.
New York Giants broker Saquon Barkley announced in July 2021 that he would place all of his referral income, totaling approximately $10 million, in bitcoins. He earned his bills at the end of the year when bitcoin hadn’t crashed. as much as it does today. Since then, the market position has been affected, and unless he sells his positions, it is a smart possibility that Barkley has taken a big hit.
Until the Securities and Exchange Commission and other regulators and legislators adopt regulations and regulations for the crypto industry, great care must be taken. Once regulations and oversight are in place, this would possibly be a more viable option.
At this point, it is prudent for athletes and celebrities to approve or accept cryptocurrency banknotes. Bitcoin, the largest virtual asset, fell below $16,000 in November, just a year after hitting a record $69,000 in November 2021. The crypto industry has noticed that its market capitalization fell from about $3 trillion to about $900 billion. These issues have scared both virtual asset owners and potential altcoin buyers.