Trevor Lawrence crypto endorsement cost him a lawsuit after the collapse of FTX exchange
William Trevor Lawrence is an American football quarterback for the Jacksonville Jaguars of the NFL. He and several other celebrity athletes have been charged with a class action lawsuit demanding to seek damages after FTX filed for bankruptcy.
Tom Brady, Stephen Curry, Shohei Ohtani and Shaquille O’Neal are some of the celebrities facing a similar lawsuit and are ordered to appear for the hearing.
FTX sponsored the athlete before the 2021 NFT drafts when he was to play with the Jaguars. As part of the deal, he promoted the FTX exchange on social media platforms and became the face of the now bankrupt exchange.
It is also believed that the player took $24 million as a signing bonus in cryptocurrency and lost $15 million when the crypto market crashed in 2022. Though he called those claims misleading and stated that the signing bonus is different from what he received from FTX.
Despite being clear about the deal, Lawrence has been accused of not doing the due diligence before marketing FTX products (Blockfolio) to his fans and the general public.
He is also accused of not disclosing the amount of compensation received from promoting FTX. The nature and scope of the deal.
Earlier, Canadian entrepreneur & businessman Kevin O’Leary who is also one of the judges in the famous Shark Tank series appeared in front of the Senate. He was also charged with a similar lawsuit of misleading investors and encouraging them to invest in FTX.
FTX exchange was founded in 2019 and rose to prominence in 2021. It was second only to Binance before filing for bankruptcy. The CEO & founder Sam Bankman-Fried has been charged with financial misconduct and multiple frauds.
Sam and Caroline Ellison, the CEO of Alameda Research colluded and use FTX customers’ deposits to fund their expenses and diverted them to the Alameda hedge fund without notifying the customers.
Sam has been released by the police after paying $250 million bail. He will be extradited to US from Bahamas while co-founder Gary Wang and Caroline Ellison pleads guilty at the same time.
At the time of writing, the hearing of Trevor Lawrence crypto case is yet to commence.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.