Judge Clears Celebrities of FTX Investor Claims In Lawsuit

Tom Brady, Stephen Curry, and others have been cleared of most claims in a lawsuit regarding FTX endorsements, as ruled by Judge K. Michael Moore in Florida.

Experts note the ruling highlights the difficulty of proving liability in financial endorsements without evidence of malicious intent or direct knowledge of fraud.

FTX’s investor lawsuit included high-profile celebrities like Tom Brady, Stephen Curry, and others accused of promoting the exchange between 2021 and 2022. Judge K. Michael Moore of Florida’s U.S. District Court ruled their endorsements do not establish liability without proof showing knowledge of underlying fraud.

“The plaintiffs failed to show that Brady, Gisele, Curry, or O’Leary had actual knowledge of the wrongdoing happening behind the scenes,” said Judge K. Michael Moore, U.S. District Court.

The ruling dismissed claims against these celebrities, yet the broader litigation targeting FTX affiliates seeks $21 billion in damages. It signals potential financial relief for the celebrities, protecting them from significant fines but keeping the case alive against other involved parties.

The decision hasn’t significantly shifted major crypto market metrics such as token values or staking flows but emphasizes reputational impacts on celebrity endorsers’ market strategies. Shaquille O’Neal, another FTX promoter, settled out of court previously.

Ripple effects involve an ongoing debate over celebrity responsibilities in crypto markets, echoing past rulings such as those involving Floyd Mayweather. Public figures remain under scrutiny in financial promotions, reinforcing the importance of transparency and knowledge of endorsed products.

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