Celebrities in the Spotlight: Legal Battles Over FTX Promotions

A federal judge has decided that a lawsuit involving several famous athletes and their alleged role in promoting the now-collapsed cryptocurrency exchange FTX can proceed, although in a limited capacity. The key sports figures include famous names such as Tom Brady and Stephen Curry.

The court ruled that the investors did not sufficiently demonstrate that these celebrities knew about the fraudulent nature of FTX, thus dismissing most of the claims. However, the judge allowed the lawsuit to move forward under specific state laws, implying a possibility that these personalities might have been involved in selling unregistered securities.

This legal development points to a broader scrutiny on celebrities acting as brand ambassadors. While the defendants' lawyers haven't commented, the case persists with plans to introduce new defendants. FTX, having filed for bankruptcy in late 2022, now seeks to settle its liabilities, marking an ongoing saga in both celebrity culture and the cryptocurrency realm.

(With inputs from agencies.)