Ortiz, Brady are among the defendants in a lawsuit over the collapse of FTX

Former Red Sox player David Ortiz and quarterback Tom Brady are listed along with several other athletes and celebrities in a class-action lawsuit filed on Tuesday over the sudden crash of cryptocurrency exchange FTX. Oklahoma-based FTX has purchased the naming rights to the Miami Heat’s home arena. It states that plaintiff Edwin Garrison, of Oklahoma, purchased an unregistered security from FTX and funded it with “a sufficient amount of crypto assets to earn interest on his holdings.” Garrison claims he decided to invest with FTX after experiencing “misrepresentations and omissions” about the platform. Because Brady, Ortiz, and the other listed defendants acted as ambassadors for the brand, the lawsuit alleges that they are liable for damages to the investors. Other high-profile defendants include supermodel Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Odonis Haslem, Golden State Warriors player Stephen Curry and his entire squad, former NBA star Shaquille O’Neal, and Jacksonville Jaguars quarterback William Trevor Lawrence. Los Angeles Angels player Shuhei Ohtani, tennis player Naomi Osaka, and comedian-actor Larry David. FTX founder and former CEO, Sam Bankman-Fried, is also named as a defendant. “Part of the scheme used by the FTX entities involved using some of the biggest names in sports and entertainment — like these defendants — to raise money and get American consumers to invest in[return-producing accounts]which were largely offered and sold from the FTX entities’ domestic base of operations here in Miami, Florida, and poured billions of dollars into the FTX scam platform to keep the whole scheme afloat,” the lawsuit states. One of the counts included in the suit is a civil conspiracy allegation. “The FTX entities and Defendants made numerous misrepresentations and omissions to the plaintiff and group members about the fraudulent FTX platform in order to instill confidence and lead consumers to invest in what was ultimately a Ponzi scheme, misleading customers and potential customers with the false impression that any cryptocurrency assets were held on the FTX platform. The scam was safe and was not invested in unregistered securities,” according to the lawsuit. FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turbulence this year, including a sharp drop in the price of bitcoin and other digital assets. Other crypto companies have failed as a result of the FTX crash, events reminiscent of the domino-like crashes of the 2008 financial crisis, and just days after the FTX crash, the public began to get a sense of what a mess a bankruptcy case could be. Users are kept frustrated in the dark about when, if any, they might get their refund. In a lawsuit, FTX lawyers said there are already more than 100,000 claims against the company and they estimate that number could rise to more than a million, mostly from customers, once the case is completed. The court ordered FTX to submit a list of at least the company’s 50 largest creditors by November 18. Criminal activity or securities offenses have been committed, The Associated Press contributed to this report.

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Former Red Sox player David Ortiz and quarterback Tom Brady along with several other athletes and celebrities are listed in a class action lawsuit filed on Tuesday over the sudden crash of cryptocurrency exchange FTX.

The lawsuit It was filed with the US District Court in Miami, Florida, where Bahamas-based FTX recently purchased the naming rights to the Miami Heat’s home arena.

It states that Plaintiff Edwin Garrison, of Oklahoma, purchased an unregistered security from FTX and financed it with “a sufficient quantity of crypto assets to earn interest on his holdings.” Garrison claims he decided to invest with FTX after experiencing “misrepresentations and omissions” about the platform.

Because Brady, Ortiz, and the other listed defendants acted as ambassadors for the brand, the lawsuit alleges that they are liable for damages to the investors.

Other high-profile defendants include supermodel Gisele Bundchen, “Shark Tank” investor Kevin O’Leary, Miami Heat player Odonis Haslem, Golden State Warriors player Stephen Curry and his entire squad, former NBA star Shaquille O’Neal, and Jacksonville Jaguars quarterback William Trevor Lawrence. Los Angeles Angels player Shuhei Ohtani, tennis player Naomi Osaka, and comedian-actor Larry David. FTX founder and former CEO, Sam Bankman-Fried, is also named as a defendant.

“Part of the scheme used by the FTX entities involved using some of the biggest names in sports and entertainment — like these defendants — to raise funds and get American consumers to invest in (return-producing accounts), which were largely offered and sold from the FTX entities’ domestic base of operations here. In Miami, Florida, it poured billions of dollars into a scam FTX platform to keep the whole scheme afloat,” the lawsuit states.

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One of the charges included in the suit is a civil conspiracy allegation.

“The FTX entities and Defendants made numerous misrepresentations and omissions to the plaintiff and group members about the fraudulent FTX platform in order to instill confidence and lead consumers to invest in what was ultimately a Ponzi scheme, misleading customers and potential customers with the false impression that any cryptocurrency assets were held on the FTX platform. The scam was safe and was not invested in unregistered securities,” according to the lawsuit.

FTX filed for bankruptcy protection on Friday, sending tsunami-like waves through the cryptocurrency industry, which has seen its fair share of volatility and turbulence this year, including a sharp drop in the price of bitcoin and other digital assets. Other crypto companies fail as a result of the FTX crash, events reminiscent of the domino-like collapses of the 2008 financial crisis.

Just days after the collapse of FTX, the public was beginning to get a sense of how messy a bankruptcy case could be. Users are kept frustrated in the dark about when, if any, they might get their refund.

In a lawsuit, FTX lawyers said there are already more than 100,000 claims against the company and they estimate that number could rise to more than a million, mostly from customers, once the case is completed. The court ordered FTX to submit a list of at least the company’s 50 largest creditors by November 18.

Meanwhile, the Associated Press reports that FTX and its CEO are under investigation by the Department of Justice and the Securities and Exchange Commission to determine whether any criminal activity or securities-related offenses were committed.

The Associated Press contributed to this report.

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