Lawsuit assertions largely dismissed against Tom Brady, Shohei Ohtani, and other defendants in the FTX crypto litigation
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Blowing up almost every allegation lodged against big-name investors, including sports icons like Steph Curry, Tom Brady, and Shohei Ohtani, a federal judge decided to wave off the majority of the claims in a lawsuit against them, all related to their promotion of the defunct cryptocurrency exchange FTX.
As decided by Judge K. Michael Moore in Miami, 12 out of the 14 claims were dismissed in a 49-page judgement. As per the ruling, these investors failed to establish proof that the celebrities promoting FTX knew about its fraudulent activities. The high-profile promoters receiving payments weren't found to be part of a conspiracy, according to the decision.
FTX was the playground for the elite and gained attention daily throughout 2022, with celebrities from diverse fields jumping on board in ambassador roles.
However, it was revealed that FTX's founder, Sam Bankman-Fried, had been spreading false information to investors, leading to one of the most catastrophic financial disasters in recent history. Tons of cash were lost, and celebrities found themselves slapped with class-action lawsuits over their alleged role.
ARTS-AND-CRYPTOS: TOM BRADY AND THE GREAT FTX GAMBLE
Tom Brady joined several other celebrities in the crypto arena when he jumped headfirst into the FTX crypto pool. But when the dust settled in July 2023, Brady found himself $30 million lighter, with his ex-wife, Gisele Bundchen, reportedly losing $18 million.
Bankman-Fried was subsequently snared by the law in November 2023 and convicted of fraud and related crimes. In March 2024, the 33-year-old received a 25-year sentence and was ordered to forfeit a staggering $11 billion.
The normallyMarvelousKim Kardashian was fined $1.26 million in October 2022 because she had not disclosed her paid endorsements when she promoted a certain crypto token.
Brady's run of bad luck in the crypto world is nothing short of epic.
In addition to the FTX fiasco, Brady invested heavily in a Bored Ape NFT in April 2022 for 133 ether, worth $430,000 at the time. Today, 133 ether is worth approximately $273,000.
THE SMARTEST APPLE: TAYLOR SWIFT VS. TOM BRADY AND SHAQ
While Brady and several other A-listers dove into the crypto waters, Taylor Swift made a shrewder move when she opted out of FTX promotion. The judge's decision to dismiss the majority of the legal claims against the celebrities illustrates the wisdom of her choice.
- Tom Brady, despite his success in sports, reported a loss of $30 million in 2023, following the collapse of the cryptocurrency exchange, FTX, where he had invested.
- The judge's decision in 2023 dismissed 12 out of 14 claims against celebrities including Tom Brady, who promoted FTX, as they failed to prove knowledge of its fraudulent activities.
- The entertainment industry and the world of cryptocurrency intersected in 2022, with celebrities like Tom Brady endorsing various projects, such as FTX.
- In 2024, following the financial disaster caused by FTX, Tom Brady's former business partner, Sam Bankman-Fried, was convicted of fraud and related crimes, receiving a 25-year sentence and ordered to forfeit $11 billion.
