Entire sports leagues are now facing lawsuits for featuring FTX promotions that were visible to their fan base. This comes after FTX investors pursued legal action against a multitude of celebrities and sports stars in the aftermath of the exchange’s collapse.
Some of the sports leagues which reportedly promoted FTX include the Major League Baseball (MLB), Formula 1 racing, and Mercedes-Benz Group AG’s racing team.
Sports Leagues Who Endorsed FTX Are Under Fire
According to a recent report, the investors’ lawyers sued MLB, who had major partnership with FTX. Additionally, other major sporting leaguers which signed a promotional deal with FTX prior to its collapse.
However, it was reported that the FTX investors claim that these leagues “helped push the sale of unregulated securities through promotional deals with the cryptocurrency site.”
Meanwhile, the investors claim that the sports leagues didn’t do its due diligence. Furthermore, they claim the leagues got distracted by the significant money earnings:
“MLB and many others were quick to jump into the crypto world with both feet when they saw the potential for fast money,”
Read more: Best Christmas Crypto Promotions
Celebrity Backlash Over FTX Endorsement
Several celebrities who endorsed the now-defunct FTX exchange are facing a $1 billion lawsuit.
Some of the sports stars entangled in the lawsuit include Tom Brady, Trevor Lawrence and Steph Curry.
Additionally, more celebrities from various fields are targets if they endorsed FTX in any manner before its collapse.
Furthermore, there is a lawsuit against several Youtube stars for their promotions of FTX. Some of these creators have as high as 1.8 million monthly subscribers on Youtube.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
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