A Miami federal judge has clipped the wings of a high-profile lawsuit targeting a constellation of celebrities accused of shilling for FTX—but the case isn’t going away just yet.
Tom Brady, Stephen Curry, Shohei Ohtani, and other boldfaced names—including Naomi Osaka, David Ortiz, Gisele Bündchen, and Larry David—were sued by investors claiming they played cheerleader to a crypto empire built on sand. The suit alleges these stars turned a blind eye to obvious red flags while collecting fat checks to pose as brand ambassadors for the now-defunct exchange.
On Wednesday, U.S. District Judge K. Michael Moore tossed most of the case—12 of 14 claims were dismissed outright. The judge found no proof that any of the celebrities knew FTX was a con, and said cashing endorsement checks didn’t, on its own, amount to joining a conspiracy.
Still, the door wasn’t slammed shut. The investors were granted a slim path forward under Florida law, which doesn’t require them to prove intent if unregistered securities were being peddled. A separate Oklahoma law claim also survived. The ruling means the stars may still have to defend their roles in marketing FTX’s offerings, especially if the court agrees they acted as more than just faces on a billboard.
Lawyers for the celebrity defendants stayed silent after the decision. But attorneys for the investors claimed a small but significant win, saying the ruling opens the gate for strict liability without needing to prove the stars knew the full picture.
More names may be on the way. The investors’ legal team hinted they’ll widen the net to include Major League Baseball and Formula 1, following previous settlements with Shaquille O’Neal and Trevor Lawrence.
FTX collapsed into bankruptcy in late 2022. Its founder, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and is appealing the verdict. Meanwhile, a court-approved bankruptcy plan aims to repay FTX’s customers—though reputations, unlike cash, aren’t so easily recovered.
The case is continuing in the U.S. District Court for the Southern District of Florida, under the title In re FTX Cryptocurrency Exchange Collapse Litigation, No. 23-md-03076.
