YouTubers who promoted the bankrupt crypto exchange FTX were named in a $1B class-action lawsuit led by Edwin Garrison.
The
plaintiffs claimed that the respondents promoted the FTX crypto fraud
without revealing the nature and scope of their sponsorships,
endorsement deals, or payments.
- The Southern District of Florida, Miami Division, received the lawsuit on March 15.
- The
respondents include Kevin Paffrath, Graham Stephan, Andrei Jikh,
Jaspreet Singh, Brian Jung, Jeremy Lefebvre, Tom Nash, Ben Armstrong,
Erika Kullberg, and Creators Agency LLC.
- Moskowitz Law Firm, representing the plaintiffs, says the suit consolidates several class-action cases.
- Some plaintiffs in the class action lawsuit are from different countries, and all bought unregistered securities from FTX.
- The suit claims that the defendants promoted this unregistered security for their own or FTX's financial benefits.
- The plaintiffs asserted that their damages account for a sum exceeding $1B.
- Kim Kardashian had to pay a $1.26M fine to settle with the U.S. Securities and Exchange Commission (SEC)
last year since she promoted Ethereum Max's EMAX token without properly
disclosing that she was paid $250,000 for the promotion.
- In February, former NBA star Paul Pierce was fined $1.4M by the SEC for the same offense as Kardashian.
