Shaquille O’Neal, Tom Brady and Larry David are facing a class action lawsuit for endorsing FTX

Investors in the defunct crypto exchange FTX have brought a class action lawsuit against the platform’s founder and former CEO SBF, as well as a number of famous people who promoted it.

FTX yield-bearing digital currency accounts were sold by Sam Bankman-Fried, NFL quarterback Tom Brady, and comedian Larry David, according to a class action lawsuit filed on Tuesday night in Miami. It also names Sam Bankman-Fried as a defendant.

According to the lawsuit, the defendants made “misrepresentations and omissions” intended to “induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme.”

The suit also claims that the exchange’s yield-bearing accounts were unregistered securities.

The plaintiff claims that the celebrities he named are also accountable for their roles in the alleged scheme because they “promoted, assisted in, and actively participated.” Kevin O’Leary, the Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, Naomi Osaka, and other celebrities are among those mentioned.

After a week of concerns about the company’s health, FTX disclosed late last week that it had filed for Chapter 11 bankruptcy in Delaware.

FTX US was also involved in the proceedings, which is noteworthy given the former CEO’s assertions that their US exchange was operating normally.

A hearing on the demise of FTX was recently announced by the US House Financial Services Committee. They invited all parties, including FTX founder Sam Bankman-Fried, Alameda Research, Binance, and others, to take part.

In addition to retail traders, a number of well-known cryptocurrency businesses have also suffered as a result of FTX’s demise. The FTX contagion has spread to BlockFi, Genesis, and Gemini over the past week.