NFL quarterback Trevor Lawrence, along with YouTube personalities Kevin Paffrath and Tom Nash, have settled their lawsuits related to the promotion of the now-defunct FTX exchange. The case, filed by the Moskowitz Law Firm, accused these figures of promoting FTX without proper disclosures.
The Co-Lead Counsel’s Status Report outlines how considerable negotiation led to the settlement.
Celebrity FTX Exchange Promotion Lawsuits Start to Settle
Lawrence, the Jacksonville Jaguars’ quarterback, along with Paffrath and Nash, were not the only celebrities entangled in this legal quagmire. According to court filings, Lawrence was allegedly paid over $200,000 for his promotion deal.
The lawsuit also named other influential personalities like Ben Armstrong, also known as BitBoy, who found himself under fire for his alleged mockery of the judicial system. A Twitter post at the time made by Armstrong said that,
“I am supposed to be in court today. I’m not. Why? Because I don’t give AF.”
Armstrong’s actions further complicated the situation, leading to additional harassment allegations. However, it appears that prosecutors have dismissed the charges against Armstrong in the FTX case.
Similarly, the FTX exchange had engaged in extensive marketing campaigns, roping in several well-known crypto influencers. This strategy, however, backfired following the exchange’s collapse.
The fallout from these campaigns has now come back to haunt the influencers involved.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
Other Celebs in Hot Water
The lawsuit also extended its reach to basketball legend Shaquille O’Neal, who was implicated in an $11 billion lawsuit filed by the Moskowitz law firm. The law firm finally managed to serve O’Neal after he allegedly avoided them for three months.
The FTX exchange’s promotional strategy, which heavily relied on celebrity endorsements, has now become a cautionary tale in the crypto industry. The collapse of the FTX exchange and the subsequent legal ramifications have also underscored the need for transparency and accountability in cryptocurrency promotions.
The settlement of these lawsuits marks a significant milestone in the ongoing saga surrounding the FTX exchange’s collapse. The resolution of the claims against Lawrence, Paffrath, and Nash is a step toward finalizing the tangled web of legal issues left in the wake of FTX’s downfall.
The fallout from the FTX exchange’s collapse serves as a potent reminder of the potential pitfalls of celebrity endorsements. It also showcases the importance of adherence to legal and ethical standards.