FTX celebrity promoters say crypto investors cannot sue over accounts | Reuters

The proposed class action in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the United States, which required the promoters to disclose the compensation they received.

The lawsuit seeks damages from FTX founder Sam Bankman-Fried alongside several celebrities who promoted FTX including David, the creator of TV shows “Seinfeld” and “Curb Your Enthusiasm.” It also seeks damages from a National Basketball Association team that promoted FTX, the Golden State Warriors.

The celebrities and the Warriors said in court papers filed on Friday that they had never pitched the accounts at issue in the case and did not cause the investors’ losses.

They said that under the investors’ theory, “actors in any brokerage ad would be liable for selling any security that an individual user later purchased using the brokerage’s services.”

“That’s nonsense,” the celebrities said.

Source: FTX celebrity promoters say crypto investors cannot sue over accounts | Reuters