YouTubers who promoted the bankrupt crypto exchange FTX were named in a $1B class-action lawsuit led by private investor Edwin Garrison.
Plaintiffs
argue that the YouTubers, including Andrei Jikh, Jaspreet Singh, and
others, promoted the FTX crypto fraud without revealing details about
their compensation and sponsorships.
- The lawsuit consolidates several class-action cases, according to Moskowitz Law Firm, which is representing the plaintiffs.
- 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 are seeking damages of over $1B.
- In October, Kim Kardashian agreed to pay the SEC $1.26M to settle charges that she had failed to disclose receiving payment to promote a cryptocurrency asset.
- The
SEC has emphasized that cryptocurrency and digital assets are generally
considered securities, and the traditional rules governing securities
still apply.
