A federal judge narrowed but stopped short of dismissing a lawsuit by investors seeking to hold celebrities like sports stars promoting the collapsed cryptocurrency exchange FTX.
The investors said the defendants ignored “red flags” and hid millions of dollars of payments to promote FTX as “brand ambassadors,” as part of a civil conspiracy with Sam Bankman-Fried’s exchange to defraud them into becoming customers.
In a 49-page decision on Wednesday, US District Judge K. Michael Moore in Miami dismissed 12 of the 14 claims, saying the investors did not prove the celebrities knew FTX was a fraud, and merely receiving payments did not establish a conspiracy.
He said the investors could try to prove the defendants violated Florida law by helping FTX sell unregistered securities, finding it plausible that FTX “needed influencers” to sell its products. A claim under Oklahoma law also survived.
Other defendants include sports stars David Ortiz and Naomi Osaka, supermodel Gisele Bundchen, comedian Larry David, businessman and TV personality Kevin O’Leary, and the Golden State Warriors basketball team.
