Table of Contents
- Unfortunate Decision Despite Caution
- Legal Ramifications and Class-Action Lawsuit
- Wider Impact on Influencers
- FTX's Downfall and Legal Actions
After being named in a proposed class-action lawsuit for promoting crypto exchange FTX, Larry David has expressed regret for being a part of the firm’s high-profile 2022 Super Bowl commercial.
Unfortunate Decision Despite Caution
American comedian Larry David, known for his iconic roles in Seinfeld and Curb Your Enthusiasm, recently expressed regret over his involvement in a Super Bowl ad promoting the now-failed cryptocurrency exchange, FTX. In a candid revelation during a January 31 interview, David admitted making the decision after seeking advice from friends knowledgeable about the industry.
Highlighting the unfortunate reliance on advice that led to his participation in the ill-fated promotion, David remarked,
“They said, 'Yeah, this is totally on the up and up. Yeah. It's fine. Do it.' So, like an idiot, I did it,"
Legal Ramifications and Class-Action Lawsuit
However, this decision has come with consequences. David, along with former FTX CEO Sam Bankman-Fried, NFL quarterback Tom Brady, and supermodel Gisele Bundchen, faces multiple class-action lawsuits. Filed in federal court in Florida, one such legal case accuses them of defrauding investors, who suffered losses in the sudden collapse of the cryptocurrency exchange, by not doing due diligence on the legitimacy of the crypto exchange.
In response, David and the other celebrities requested the dismissal of the case, asserting that they were not responsible for the investors' losses and did not neglect their due diligence in promoting FTX.
Wider Impact on Influencers
These TV and sports personalities are not the only public figures facing legal repercussions in connection with FTX. A parallel class-action lawsuit was filed against popular finance YouTubers such as Graham Stephan, Andrei Jikh, Jaspreet Singh, Kevin Paffrath, Ben Armstrong, Brian Jung, Jerremy Lefebvre, and Tom Nash. They are accused of promoting the now-defunct exchange on their channels without conducting adequate scrutiny, resulting in significant loss of investor funds.
FTX's Downfall and Legal Actions
FTX's demise was evident when it filed for bankruptcy in November 2022, approximately nine months after Larry David's ill-fated Super Bowl ad. The former CEO, Sam Bankman-Fried, faced severe legal consequences, being arrested, charged, and convicted of multiple felony counts related to the misuse of funds between the exchange and Alameda Research. His sentencing is scheduled for March 2024.
Despite the legal turmoil, there seems to be a silver lining for affected customers. FTX, in its post-bankruptcy phase, has shifted its focus towards compensating customers rather than attempting to resume operations. This strategic move aligns with the broader trend in the crypto industry, emphasizing accountability and restitution for those impacted by failed ventures.
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