Lawsuit Against Celebrity Promoter FTX Receives a Backup in the Form of a Former Executive

by Nik Asti

Published: May 12, 2023 at 10:30 am Updated: May 12, 2023 at 10:31 am

by Karolina Gaszcz

Edited and fact-checked: May 12, 2023 at 10:30 am

In Brief

Former compliance chief for FTX and FTX US, Friedberg, has provided a declaration supporting the lawsuit.

The former compliance head for FTX and FTX US Daniel Friedberg has provided a declaration that could support the lawsuit.

FTX has received a backup in the form of a former executive

Former Exchange Executive Aids Lawsuit Against Celebrity-Endorsed FTX

Former FTX executive Daniel Friedberg is now aiding a class-action lawsuit against celebrities who allegedly promoted the now-defunct FTX. On May 11, 2013, a Florida District Court received a proposed amendment to the class-action complaint. This amendment asserts that Friedberg provided evidence of FTX promotional activities originating from Florida. As the former Chief Regulatory Officer at FTX and the Chief Compliance Officer of FTX US, the exchange’s US operation, Friedberg’s involvement is significant.

Jurisdictional Challenges and New Evidence

Some defendants have argued that the Miami court lacks jurisdiction and that the claims have no connection to Florida. However, the declaration of Friedberg could potentially counter that defense. Avinash “Avi” Dabir, FTX US’ Vice President of Business Development, was based in Miami. He supervised the brand ambassadors for FTX, including defendants in the case like retired NBA player Shaquille O’Neal, comedian Larry David, retired NFL player Tom Brady, and FTX founder Sam Bankman Fried. This information comes from sworn testimony.

According to court documents, Dabir operated from the FTX office in Miami “early in 2021.” This fact disputes the plaintiffs’ claims, as stated in the defendants’ motions to dismiss. Some alleged promoters argue that “no conspiracy could have been engineered in Florida because FTX did not even plan to move to Miami until late September 2022” before the alleged promotional agreements were made.

Expanded Lawsuit and Ongoing Legal Proceedings

The new evidence provided by Friedberg has allowed the class-action lawyers to broaden their lawsuit. They now address the jurisdictional allegations made by the defendants. A lawsuit was filed in mid-November against several celebrity promoters. These include footballer Brady’s then-wife and model Gisele Bündchen, entrepreneur Kevin O’Leary, and basketball star Steph Curry and his team, the Golden State Warriors.

Reportedly, the ex-compliance head has also contributed to other legal proceedings against the exchange where he used to work. This information emerged months after the FTX exchange collapsed, as authorities reportedly obtained details from Friedberg.

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Lawsuit

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti