It has just come out that three celebrities have reached settlements in their FTX lawsuit, in which they were accused of misleading investors.
Trevor Lawrence, an NFL quarterback for the Jacksonville Jaguars, and YouTubers Tom Nash and Kevin Paffrath have agreed to reach a settlement, although details of this agreement were not disclosed.
Before the collapse of FTX, Lawrence had signed a sponsorship deal with Blockfolio, a subsidiary of FTX, in 2021. At the time, Lawrence told the following about the Blockfolio deal:
"When it comes to my crypto portfolio, I wanted a long-term partner in the space that I could trust," he said.
According to a filing with the US bankruptcy court on 31 August, Lawrence received $205,555.35 from the company for this purpose.
Nash, a prominent YouTube influencer with 289,000 subscribers, was also paid by FTX for a recommendation, according to a class-action complaint filed against him and other influencers by the Moskowitz Law Firm in March.
After FTX collapsed, the complaint alleges that Nash and other influencers cleaned their channels of content that touted the company or its disgraced founder Sam Bankman-Fried.
Nash, who is a citizen of Australia, did not initially respond to the lawsuit, prompting Moskowitz to ask a federal judge to grant them permission to serve the lawsuit via a tweet.
Paffrath, another influencer with 1.88 million subscribers on his YouTube channel 'Meet Kevin', admitted in a video on 17 November 2022 that he had previously been sponsored by FTX, something he called a "scar" he regretted.
In a second video on 16 March, a day after he was included in Moskowitz's class-action lawsuit, Paffrath repeated his accusations against SBF for the fraud. He called suggestions that influencers contributed to losses due to FTX's fraud "ridiculous."
The three are part of a longer list of celebrities FTX worked with before it went under. Among others now taking legal action for their association with the exchange are former NFL quarterback Tom Brady, his ex-wife Gisele Bundchen, former NBA player Shaquille O'Neal and tennis star Naomi Osaka.
News of these settlements comes after FTX was hit by a cyber attack that temporarily took down an online portal for former clients to file claims. Meanwhile, a federal judge has allowed FTX to sell the $3.4 billion of Solana, Ethereum, Bitcoin and other assets it held as part of the bankruptcy proceedings.
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