NFL star Trevor Lawrence and 2 YouTube influencers settled the FTX endorsement class-action: Report


17 Sep 2023 8:00 PM

While the terms of the settlements remain undisclosed, they mark the first resolutions amid the many suits against FTX endorsers....

  • NFL quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, has settled a lawsuit related to their endorsement of the now-defunct FTX cryptocurrency exchange.
  • The terms of the settlement remain undisclosed.
  • This is the first resolution among over a dozen celebrities and firms accused of assisting FTX founder Sam Bankman-Fried in duping investors.
  • Other high-profile individuals, including Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O’Neal, and Larry David, who endorsed FTX, are also facing lawsuits.
  • The lawsuits are consolidated in a federal court in Miami, along with complaints against venture capital and private equity firms that invested in FTX.
  • FTX gained attention through celebrity endorsements, including naming rights to the Miami Heat’s arena and a Super Bowl commercial featuring Larry David.
  • Lawyers representing the plaintiffs in the $1 billion case against endorsers are engaged in ongoing settlement discussions with other defendants.
  • The lawsuit alleges that endorsers failed to disclose details of their deals and compensation to investors.
  • Lawrence received a $500,000 payment in cryptocurrency for his endorsement deal with FTX.
  • Paffrath allegedly received $2,500 for each mention of FTX on his YouTube channel.
  • Lawyers for the endorsers argue that the advertisements didn't encourage users to deposit money into FTX accounts.
  • Paffrath and Nash removed their FTX endorsements from their YouTube channels and issued apologies after FTX collapsed.

The sentiment of the article is negative, as it discusses a lawsuit related to the endorsement of a now-defunct cryptocurrency exchange and accuses endorsers of failing to disclose details of their deals and compensation to investors.

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