•A new class action lawsuit has been filed against YouTubers who promoted FTX for $1 billion in damages.
•The lawsuit alleges that these influencers promoted the platform without revealing any payment or compensation.
•The collapse of FTX had immense damage to the entire industry, leading to stricter regulations from SEC.
Lawsuit Filed Against Crypto Influencers
A new class action lawsuit has been filed against YouTubers who promoted FTX, a defunct cryptocurrency trading platform, and are seeking $1 billion in damages related to their association with the exchange. Several people have filed lawsuits due to the FTX fiasco and this is one of them.
Accusations Against Youtubers
Many influencers were accused of promoting FTX and then deleting videos related to it from their channels without revealing any payment or compensation they received for endorsing the product. The focal point of this lawsuit is the influencers’ advocacy for the platform’s exchange and its subsidiary Alameda Research.
Influencers Involved In Lawsuit
High-profile individuals such as Erika Kullberg, BitBoy Ben Armstrong, and “Meet Kevin” Kevin Paffrath were sued since then in connection with this incident. The Moskowitz Law Firm is defending the plaintiffs while Adam Moskowitz is also engaged in a similar action against Tom Brady and other celebrities who actively pushed FTX before it went bankrupt in November of last year.
Damage To The Industry
FTX’s bankruptcy caused immense damage to the entire digital asset market as well as many firms declared bankruptcy because of it which resulted in more stringent regulations from SEC (Securities & Exchange Commission).
As a result of these events, several lawsuits have been filed against high-profile individuals who promoted now-defunct cryptocurrency exchange FTX without revealing any payment or compensation they received for endorsing it. The lawsuit seeks $1 billion in damages related to their association with the exchange.