The sudden collapse of cryptocurrency firm FTX is just one of the many problems the crypto world is currently facing. However, what makes FTX’s bankruptcy even more notable in NBA circles is that the company has been linked to a couple of the league’s most well-known personalities, namely Stephen Curry and Shaquille O’Neal.
Apparently, both Curry and O’Neal have been listed in a class action lawsuit stemming from the downfall of FTX. Also included in the lawsuit are NFL legend Tom Brady and his ex-wife Gisele Bundchen.
“The Golden State Warriors and star Stephen Curry are named among a list of other high-profile backers in a class-action lawsuit filed this week following the swift collapse of cryptocurrency firm FTX, which filed for bankruptcy last week,” wrote Madeline Kenney of the Mercury News.
“FTX and its former CEO, Sam Bankman-Fried, were sued over claims the platform targeted ‘unsophisticated investors’ using celebrity endorsers including Curry, the [Golden State] Warriors, Tom Brady, Gisele Bundchen and Shaquille O’Neal.”
What happened to FTX?
The crypto giant is a Bahamas-based cryptocurrency exchange that, at its peak, had more than one million users and reported over $1 billion in revenue in 2021. But the liquidity crisis that has befallen the industry resulted in the company filing for bankruptcy. Its users have been unable to access their money, let alone withdraw money, leaving them and investors crestfallen.
Because cryptocurrency is largely unregulated, no mechanisms for depositor insurance are in place. Consequently, those who have placed money in the exchange are unlikely to recover their losses. Hence, some users have resorted to filing legal actions against the company, its founders and endorsers, which include Curry, O’Neal and Brady.
Going after the endorsers
Curry was one of the most prominent promoters of FTX. He appeared in a video ad for the company earlier this year. The message involved encouraging people to invest, claiming that they didn’t have to be crypto experts to engage in the world of crypto trading.
Brady and O’Neal featured in similar marketing videos.
Notably, the Warriors also endorsed the cryptocurrency exchange, showing in-arena ads that promoted its services. The Miami Heat also partnered with FTX, and the franchise’s home arena was even named after the cryptocurrency firm.
It remains to be seen how the lawsuit will turn out and if it will affect the defendants’ finances.