By Larry Wright
The cryptocurrency market has finally recovered from the shock waves that were created as a result of the catastrophic collapse of the FTX exchange. The firm was caught in a liquidity crunch that revealed a lot of financial mismanagement practices later. Following the collapse of FTX, many cryptocurrency organizations went down with it.
A lot of politicians that received funds from FTX also faced the heat. On the other hand, several A-list celebrities hailing from the entertainment industry and professional sports were also caught up in the controversy.
However, the axe of FTX’s demise is now falling on YouTubers. Several media outlets have reported that the affected victims of the FTX exchange have launched a $1 billion class action lawsuit against several YouTube influencers who advertised the exchange on their channels. This lawsuit is currently underway in the Southern District of Florida, Miami.
The class action lawsuit representative is attorney Edwin Garrison. He has argued in a court of law that YouTubers should be tried for promoting FTX when it was performing at its peak.
Several YouTube Influencers are Going to Face Legal Troubles for Marketing FTX
Lead attorney Garrison has told the media about the list of YouTubers that are going to be tried during this lawsuit. He informed that Meet Kevin, P. Graham Stephan, Brain Jung, Financial Education, BitBoy Crypto, Erika Kullberg, Tom Nash, and Andrei Jikh are some of the influencers that are added.
In addition to YouTube promoters, this lawsuit has also included other celebrities that partake in promoting FTX such as NFL champion Tom Brady and former CEO of FTX Sam Bankman-Fried. This lawsuit is going to target the promoters who appeared to their viewers as active users of FTX services.
The lawsuit has argued in the court that all promoters received handsome sums for promoting the exchange. However, they refrained from revealing the true nature of their advert affiliations and the scope of their sponsorship deal.
At the same time, the celebrities are also charged with failing to do proper due diligence before advertising the ads introducing FTX. The insolvent crypto firm is also engulfed in an international lawsuit where 7 plaintiffs have charged FTX in the matter of purchasing yield-bearing accounts for unregistered securities.
In the case of 7 international plaintiffs, the Moskowitz legal team has argued in court that their clients have suffered from losses on account of misleading promotions. Garrison who is heading the YouTube class action lawsuit is also involved in other lawsuits that can morph into class action suits.
On the other hand, some YouTubers who are charged in these lawsuits have posted some responses on the matter. Kevin Paffarath has claimed that he is willing to cooperate with the plaintiffs and he told Coffeezilla that he is not responsible for their losses.
BitBoy Crypto channel host Ben Armstrong has posted on his Twitter that he is preparing to fight the lawsuit by challenging the credibility of the lawyers that have brought them. FTX exchange is a thing of the past but the lawsuits keep piling up in this matter.
The former CEO of FTX is also facing a lawsuit that is trying him for fraudulent conduct and playing an important role in the demise of FTX.