Tom Brady, Gisele Bündchen Among Celebrities Sued in Lawsuit Against Crypto Company FTX
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George Pimentel/Getty Tom Brady, Gisele Bündchen
Tom Brady and ex-wife Gisele Bündchen are among a roster of celebrities who have been named as defendants in a class-action lawsuit against the bankrupt crypto-currency company FTX.
The lawsuit, filed by an investor on Tuesday, alleges that by endorsing the company, the former couple — along with Naomi Osaka, Steph Curry, Shaquille O'Neal, Larry David and others — brought credibility to the business, according to the Associated Press.
"Part of the scheme employed by the FTX Entities involved utilizing some of the biggest names in sports and entertainment — like these Defendants — to raise funds and drive American consumers to invest ... pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat," the lawsuit stated.
The lawsuit comes less than a week after the Bahamas-based company sought bankruptcy protection after amassing billions of dollars worth of losses, per the AP. Its founder, Sam Bankman-Fried, is facing investigations by state and federal authorities.
A rep for Brady and Bündchen did not immediately return PEOPLE's request for a comment.
Along with relying on celebrity testimonials, the company also had the naming rights to the FTX Arena in Miami.
A representative for the Miami Heat told ESPN last Friday that signage would be removed from the arena in the near future.
"The reports about FTX and its affiliates are extremely disappointing," the county and team said in a joint statement. "Miami-Dade County and the Miami HEAT are immediately taking action to terminate our business relationships with FTX. We will be working together to find a new naming rights partner for the arena."
FTX also had previous sponsorship deals with the Golden State Warriors and the Washington Wizards, in addition to naming rights to a Formula One racing team, per ESPN.
Celebrity endorsements for emerging crypto companies have not been without controversy.
Momodu Mansaray/WireImage
Last month, Kim Kardashian agreed to settle charges from the U.S. Securities and Exchange Commission (SEC) "for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion."
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The SEC announced the charges on Oct. 3 in an official release, and stated that SKIMS founder, 42, "agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission's ongoing investigation" without admitting or denying the SEC's findings.
SEC Chair Gary Gensler said in a statement that Kardashian's case "is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn't mean that those investment products are right for all investors."
"We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals," he said.
