Judge Dismisses Most Claims Against FTX Promoters

A U.S. federal judge has dismissed most claims against celebrities and influencers, including Tom Brady, Gisele Bündchen, Stephen Curry, and Kevin O’Leary, who promoted the collapsed cryptocurrency exchange FTX. The judge found that plaintiffs failed to prove the endorsers knew about FTX’s fraud or conspired in any wrongdoing, noting that being paid for promotion is insufficient for liability. Two claims alleging violations of state securities laws in Florida and Oklahoma related to selling unregistered securities were allowed to proceed, and plaintiffs can amend their complaint to provide stronger evidence. The ruling is a setback for those seeking to hold celebrities accountable for the exchange’s collapse, which resulted in billions in customer losses and the conviction of FTX founder Sam Bankman-Fried. Lawyers for the investors regard the remaining state claims as a partial win, highlighting Florida’s strict liability standards. The litigation continues as the case develops.