In a complaint filed Tuesday in federal court in Miami, Oklahoma resident Edwin Garrison is asking to represent a class of “thousands, if not millions, of consumers nationwide.” That includes all investors in the US who were enrolled in yield-bearing FTX crypto accounts, which he alleges constitute unregistered securities in violation of US and Florida laws.
Garrison claims FTX used celebrities, who along with Brady and Curry also included
Lawyers for FTX didn’t immediately respond to emails seeking comment on the suit. Representatives of Brady and Bundchen didn’t immediately respond to emails.
“FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments,” Garrison said in the suit. “As a result, American consumers collectively sustained over $11 billion” in damages.
Garrison’s legal team said in the lawsuit that it had found “many incriminating FTX emails and texts” but didn’t say what was in them or what made them incriminating.
The suit, which seeks unspecified damages, is the first to be filed against Bankman-Fried and his companies since FTX’s bankruptcy court filing, as investors start jockeying to recover whatever losses they can. The bankruptcy filing for protection from creditors may limit Garrison and others in efforts to get their money back. FTX and its related companies may have more than a million creditors, according to court filings.
Celebrities have been sued in other cases claiming crypto losses.
Garrison is represented by the
Meanwhile, the collapse of FTX has thrown a wrench into Voyager’s plan to sell its assets to the company for $1.4 billion.
(Updates with background on other crypto lawsuits.)
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