According to one lawsuit, a lifelong New England Patriots fan who idolized Tom Brady invested his entire live savings in FTX after the future Hall of Fame quarterback touted the crypto exchange in commercials.
Michael Liviarados, 56, of Connecticut, transferred $30,000 in crypto to a bankrupt company founded by Sam Bankman-Fried. He was indicted on fraud charges this week.
“As a lifelong New England Patriots fan, you can only imagine the influence that Tom Brady has had,” Liviarados said. told the Washington Post.
The Liviarados hired Florida-based attorney Adam Moskowitz, who last month represented Brady and “Shark Tank” co-host Kevin “Mr. Awesome” O’Leary, another FTX pitchman.
O’Leary and Brady “promoted, assisted and actively participated” in FTX’s “offering and sale of unregistered securities.”
FTX It filed for bankruptcy last month – The stunning collapse of a company once valued at $40 billion during the height of the cryptocurrency boom.
“Overnight, Mr. Liviarados’ assets were placed in his YBA [yield-bearing account] FTX was robbed from him because of the implosion” and filed for Chapter 11 bankruptcy protection, according to the suit.
The suit, which seeks unspecified damages, alleges O’Leary and Brady are liable for “misrepresentations and omissions” during “aggressive marketing” of “deceptive” practices by FTX.
The lawsuit alleges that O’Leary, Brady and other celebrities “exaggerated FTX to their social media fans and encouraged retail consumers to accept the deceptive FTX platform.”
O’Leary recently revealed that he lost a $15 million fee he was paid as a spokesperson for FTX.
Brady, along with his ex-wife Gisele Bundchen, took a stake in FTX last year. The amount was not disclosed, but the pair agreed to donate millions of dollars to FTX’s worthwhile philanthropic work, the company said at the time of the agreement.
Both Brady and O’Leary were not immediately available for comment.
The Justice Department announced charges against Bankman-Fried on Tuesday, including wire fraud, securities fraud and conspiracy to commit wire fraud and securities fraud.
If convicted, Bankman-Fried The maximum sentence is 115 years in prison. He is there He was imprisoned in a Bahamian prisonThere he fights extradition to the United States.
Many Celebrity supportersIncluding Larry David, Stephen Curry, Naomi Osaka and othersFTX is named in class-action lawsuits filed in the wake of its collapse.
The company exploded after rival crypto exchange Finance FTX divested all of its stake in FTT Token, its in-house digital currency.
Binance sold its FTT holdings and pulled out of a rescue plan for FTX after learning that Bankman-Fried was using client funds to cover debts incurred by sister hedge fund Alameda Research.