Regulation
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Users of the bankrupt FTX exchange sued a group of social media bloggers for actively promoting the platform to their millions of followers without disclosing the commercial nature of the relationship.
These influencers include Erica Kullberg, Ben Armstrong aka BitBoy, Kevin Paffrath or Meet Kevin.
The lawsuit alleges that some of the authors, namely Paffrat, as well as Graham Stefan and Tom Nash, have removed all FTX-supporting videos praising Sam Bankman-Freed from their YouTube channels.
The lawsuit states that bloggers later published reports that they represented a crypto exchange that could owe up to $ 3.1 billion to the 50 largest creditors. However, people believed their earlier words and suffered losses.
Yes, I used to be sponsored by FTX. I think it is a shame. It sucks. If I could fix something, I would do it, because people have suffered because of FTX,” Paffrat said in a Youtube video dated November 22.
The plaintiffs are represented by Adam Moskowitz of the law firm Moskowitz, who was also involved in a lawsuit that accused FTX promoters including Tom Brady, Gisele Bündchen and other celebrities of false advertising.
FTX paid Defendants handsomely to promote their brand and encourage their subscribers to invest. However, Defendants did not disclose the nature and extent of their sponsorship and/or advertising deals, payments and compensation.
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