Stephen Curry, Shaquille O’Neal, and several other important sports celebrities are part of a legal case involving an $11 billion class action suit against Sam Bankman Fried, the creator of the FTX. This has been a growing issue over the past few months and things look grim for FTX.
Considering that Curry and Shaq are quite knowledgeable in their own rights, fans must certainly wonder what went wrong in their relationship with FTX and why they are now part of a lawsuit filed against it. In order to find out what is going on, we need to take a closer look at FTX and understand the company’s current predicament. That will also help us understand why Shaq and Steph are at the forefront of this case.
Why is FTX being sued?
That is undoubtedly the question on people’s minds when we found out that it was being sued. As some people might already know, FTX is a cryptocurrency exchange or crypto hedge fund. Or at least they were until they suddenly declared bankruptcy. That caused the general public, which had a significant amount of money invested in the company, to panic and ask questions.
Well, it turns out that FTX was engaging in deceptive practices and not making the risks of investing clear to its client base. The lawsuit explained things clearly, “The Deceptive and failed FTX Platform was based upon false representations and deceptive conduct.Although many incriminating FTX emails and texts have already been destroyed, we located them and they evidence how FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country.”
It went on to claim that all the major investors who have lost a significant amount of money deserve equitable compensation which is estimated to be around $11 billion. The NBA stars who invested in FTX include Steph Curry, Shaq, and Udonis Haslem. Moreover, other popular sports celebrities like Tom Brady and Naomi Osaka are also part of the lawsuit.
Even Dallas Mavericks owner and businessman Mark Cuban made a statement calling out Sam Bankman. Cuban explained that borrowing money and pumping it into a company with the hopes of keeping its value alive is a very foolish decision.
In any case, it is unclear how they will cough up such a huge amount of money if they are indeed bankrupt. They will have to find a way to compensate all the investors and promoters who endorsed FTX without having clarity.
