10 Celebs Involved In The FTX Crash
It's not been a good few weeks for Sam Bankman-Fried. After the collapse of FTX and SBF's subsequent failure to secure a bailout, the fallen crypto magnate has claimed he has almost nothing left in his bank account. However, that's likely to be the least of his worries, as he's currently facing potential criminal charges in the U.S., with calls for him to be hauled in front of Congress to explain why billions of dollars of user funds appear to have vanished into thin air. After interviewing him through Twitter Spaces, YouTube crypto investigator Coffeezilla even claims to have gotten SBF to admit to fraud, with the former CEO saying FTX funds were not kept separate from each other in an apparent violation of the company's own Terms of Service.
To add to his woes, a class action lawsuit was recently filed in the state of Florida which accused Bankman-Fried, along with a litany of famous faces that have previously endorsed FTX, of several violations of Florida law. The lawsuit alleges that the defendants violated both the Florida Deceptive and Unfair Trade Practices Act and the Florida Securities and Investor Protection Act, and asks for compensation on behalf of all affected investors. The case was recently assigned a judge and it appears that summons will be issued shortly, so these 10 celebs had better make sure their lawyers are on speed dial.
Tom Brady
NFL star Tom Brady is one of the celebs who stands to lose the most from the collapse of FTX. The lawsuit describes how he featured in a $20 million ad campaign for the crypto exchange in 2021, starring in a commercial called, "FTX. You In?" where Brady tells acquaintances to join the platform. The commercial has since been removed from video streaming platforms, with the link included in the lawsuit now leading to a private video. The real trouble for Brady is that, as well as simply starring in an ad campaign, he also took a stake in FTX itself, so he was arguably more than just a simple promoter.
Specifically, Brady is alleged to have taken an equity stake in FTX Trading Ltd, although it's not known at the time of writing exactly how much that stake might have been worth. What's certain though is that after the collapse of the platform, the stake is now more of a liability than an asset. While some of the other celebs here could feasibly argue they were simply paid to do brand deals and didn't do enough due diligence, Brady's personal investment in the company means that pleading a similar excuse would not necessarily hold up in court. Alongside Brady, his former wife Gisele Bündchen is also named as a co-defendant in the suit for the same reasons.
Steph Curry
Much like Tom Brady, Steph Curry starred in a high-profile ad campaign for FTX, which was referred to as the "#notanexpert" campaign, according to the lawsuit. The filing describes how Curry repeatedly tells viewers he's not an expert in cryptocurrency in the commercial, saying "I'm not an expert, and I don't need to be. With FTX I have everything I need to buy, sell, and trade crypto safely." He also signed a contract in September 2021 to become a global ambassador for the brand, and as part of the deal, was given equity in FTX Trading Ltd (via PRNewswire).
His role as an ambassador, according to FTX's press release, was to "tout the viability of cryptocurrency to new audiences around the world," or in other words, get new investors to sign up for the platform. Like Brady, Curry's equity stake in FTX puts him more at risk than some of the other celebs targeted in the lawsuit, as it would likely be very tricky for him to plead ignorance over the business dealings of a company he was actively invested in. As well as targeting Steph Curry individually, the lawsuit also names his team, Golden State Warriors, as a defendant in the case. The Warriors partnered with FTX earlier in 2022, after Curry acted as a middleman to introduce the two companies, according to an NBA press release. It's probably safe to say that Curry is in hot water with his team after this latest filing.
Kevin O'Leary
Kevin O'Leary, the businessman best known for his role on "Shark Tank," is the outlier among the defendants named in the lawsuit, in that he's continued defending Sam Bankman-Fried and FTX even after the exchange collapsed. In an interview on the YouTube channel Crypto Banter, O'Leary was asked whether he would back SBF again after FTX's sudden downfall. His response was that he would, but only if SBF was limited to "trading control" of the assets rather than "operational control." This seems rather ironic considering that losses racked up by Alameda Research, the trading company that Bankman-Fried owned 90% of, were allegedly responsible for the collapse of FTX in the first place.
O'Leary later disclosed that FTX had paid him $15 million in total to be an ambassador, with $1 million of that consisting of an equity stake in the company (via Business Insider). He also claims to have personally held $9.7 million in crypto tokens on the platform, which has since been completely wiped out as the firm declared bankruptcy. Even so, he has remained reluctant to blame Bankman-Fried for the collapse, telling an interviewer, "If you want to say he's guilty before he's tried, I just don't understand it" (via Business Insider).
Shaquille O'Neal
NBA legend and sports analyst Shaquille O'Neal is one of FTX's more recent signings, with a Tweet evidenced in the lawsuit indicating that he first announced his partnership with FTX on June 1st 2022. In the video attached to the Tweet, Shaq says, "I'm excited to be partnering with FTX to help make crypto accessible for everyone. I'm all in. Are you?" The lawsuit makes no further allegations about Shaq's connection to FTX and no evidence has emerged that the former NBA player owns a stake in any FTX-related company. O'Neal has so far chosen not to make a public statement on the case.
This isn't Shaq's first foray into the crypto world, as in 2021, he launched his own NFT series, titled "Shaq Gives Back" (via Benzinga). The collection consisted of 10,000 NFTs highlighting the charity work he has been involved in, and 100% of the proceeds went to the Shaquille O'Neal Foundation.
Larry David
Comedian Larry David is also named as a defendant in the lawsuit due to his involvement in FTX's 2022 Super Bowl ad. Per the lawsuit, David created and starred in an ad called "Don't Miss Out on Crypto," where his character is skeptical of common inventions like the toilet, the wheel, and the dishwasher. He's then skeptical of a salesman presenting the FTX app, saying "Yeah, I don't think so. And I'm never wrong on this stuff. Never" (via Times of Israel). The ad ends with a warning to viewers: "Don't be like Larry."
The ad generated plenty of buzz around FTX, with Mashable reporting that the comedian's name was trending on Twitter hours after the commercial was first shown. At the time, reaction to the comedian's appearance in a cryptocurrency ad was mixed, with some on Twitter enjoying the skit and some clearly not so enthused. Zach Cornfeld, the producer and co-star of Try Guys, even humorously called David's appearance "the single most devastating thing to ever happen to me." In retrospect, it appears that the naysayers, including David's character in the commercial, may have been right.
Trevor Lawrence
Shortly after being the first pick in the 2021 NFL draft, Trevor Lawrence signed a multi-year deal with Blockfolio, a cryptocurrency investing app that was owned by FTX (via Forbes). A large proportion of Lawrence's signing bonus was reportedly paid in cryptocurrency, which was deposited directly into his Blockfolio account. It's not clear whether Lawrence still held the tokens in Blockfolio by the time FTX collapsed, but if he did, it's worth nothing now.
Forbes reports that Lawrence said he was "really excited to be joining the Blockfolio team," adding, "when it comes to my crypto portfolio, I wanted a long-term partner in the space that I could trust." Like many of the other celebs paid to endorse the exchange, the goal was reportedly for Lawrence to be a familiar face that would encourage people to join the platform. The lawsuit doesn't accuse Lawrence of anything other than being a paid partner of FTX, and it doesn't appear that the football star had any equity in FTX or its related companies.
Udonis Haslem
Another notable athlete caught up in the lawsuit is Udonis Haslem, who starred in FTX's "You In?" campaign alongside Tom Brady and Gisele Bündchen. In a copy of the commercial uploaded to YouTube, Haslem can be seen telling viewers, "Our city. Our team. FTX. You in, Miami?" The same commercial announces Miami Heat as an official partner of FTX, but the team is not listed as a defendant in the lawsuit, only Haslem himself.
Alongside starring in the ad, Haslem also teamed up with FTX to launch the Minority Small Business Grant Initiative, which aimed to invest in minority-owned small businesses in the local Miami area. In an interview with Forbes, he claimed FTX "really aligned with [his] goals," since CEO Sam Bankman-Fried was all about giving back to the community, just like he was. Bankman-Fried was indeed a keen philanthropist, mostly donating through his exchange's charity arm "FTX Future Fund." However, given the recent accusations SBF has faced about mishandling customer funds, questions will inevitably arise over whether all of that money was ever his to give away in the first place.
David Ortiz
David Ortiz, or "Big Papi" as he's also known, got himself tangled up in the collapse of the exchange after he accepted a sponsorship deal with FTX in 2021. CoinDesk reports that Ortiz was paid for the deal in cryptocurrency deposited into an FTX account, with the star also releasing multiple NFT collections in partnership with the platform. Like other FTX promoters, Ortiz starred in a TV commercial that debuted during the first game of the 2021 World Series and ran nationwide, according to the lawsuit which names him as a defendant.
FTX's promotional material for the deal co-opted the popular crypto phrase "to the moon," with Bankman-Fried saying "David is an MLB legend, known for hitting home runs to the moon [...] most importantly, he is dedicated and passionate about helping others, so when he wanted to get into crypto, we were incredibly excited to help him start his journey," (via CoinDesk). Judging by how well this partnership went, it wouldn't be surprising if Ortiz's first venture into crypto will also be his last, at least for the foreseeable future.
Shohei Ohtani
After signing a long-term partnership with FTX in November 2021, MLB legend Shohei Ohtani acted as a spokesperson to drive new customers onto the platform, according to the lawsuit. A press release from FTX confirms that Ohtani chose to be paid in cryptocurrency and in equity in FTX Trading Ltd, forgoing fiat currency entirely. The lawsuit notes that the value of Ohtani's compensation package remains unknown, although, given his status as one of the sport's biggest stars, it's likely to be at least seven figures.
Like many of the other celebs involved with Bankman-Fried, the FTX press release claims that Ohtani was keen to work with the former crypto CEO because of his generous charity work. In particular, it was claimed, the partnership would help animal charities, although no specific charities are named. Despite the player's ongoing success within baseball, the Los Angeles Times reported that there's been debate over whether his failed FTX partnership will damage his reputation in the long run, especially if he misses out on other potentially valuable brand deals because of the scandal.
Naomi Osaka
The final famous face to be accused of wrongdoing in the lawsuit is tennis ace Naomi Osaka. She inked a deal with the platform in March 2022, with the self-proclaimed aim of bringing more women into cryptocurrency. As well as starring in high-profile ad campaigns, Reuters reports that Osaka planned to play an "active role in directing and producing content," although how much content was produced with direction from the star remains unclear.
Osaka reportedly received her compensation in the form of cryptocurrency and equity in FTX, and to advertise her new partnership, wore the company's logo on her kit at several tournaments, including the Miami Open. Once again, the exact value of the compensation she received has never been publicly disclosed. However, if the case is brought before a jury, Osaka and her other famous co-defendants may find themselves handing over all the specifics to the court in a bid to absolve themselves of liability for the alleged $11 billion that the lawsuit says FTX's collapse cost investors.