3 - 5 minute read
Shaquille O’Neal, legendary basketball player and FTX celebrity endorser, has been served with a class-action lawsuit against FTX founder Sam Bankman-Fried. The lawsuit was filed by an FTX customer, Edwin Garrison, in the US District Court for the Southern District of Florida, alleging a “fraudulent scheme” by the exchange. Lawyers for the plaintiffs have claimed that Shaq was “hiding and driving away from our process servers for the past three months” leading to this dramatic chase.
FTX is a cryptocurrency derivatives exchange founded by Sam Bankman-Fried in 2019. It provides tradable crypto futures and options contracts and has become increasingly popular in recent months, boasting over 1 million users. FTX has made headlines recently for its celebrity endorsements, including Shaquille O’Neal, Kevin O’Leary, Tom Brady, and Steph Curry, who are all facing the class-action lawsuit for promoting the so-called “fraudulent scheme”. The lawsuit alleges that FTX engaged in market manipulation and insider trading, resulting in significant losses for customers.
The Moskowitz law firm has been handling the case for the plaintiffs, claiming to have attempted to reach Shaq through social media and other means before ultimately serving him outside his Atlanta home. The lawyers reportedly had to convince Shaq not to destroy or erase any security tapes that may have recorded the service. The case has been filed in the Southern District of Florida and is being handled by attorneys Adam Moskowitz and David Boies.
In an email to The Block, Moskowitz said, “We took Judge Moore’s instructions very seriously and are glad to finally end this silly sideshow.” The Judge had denied a motion to allow O’Neal to be served electronically. The lawyers have been attempting to reach Shaq for some time, leaving comments on his social media, as well as trying to serve him at least 20 times.
Shaquille O’Neal has featured in an FTX commercial dubbed “Shaqtoshi” but had previously stated that he was “just a paid spokesperson for a commercial” following FTX’s collapse. The lawyers allege that celebrities like Shaq were promoting a “fraudulent scheme” orchestrated by FTX. Shaq’s involvement in this lawsuit has been a subject of much attention in the media lately, and this dramatic chase leading to his finally being served outside his Atlanta home only fuels more interest.
Traders in the cryptocurrency market should be aware of the ongoing class-action lawsuit against FTX and its celebrity endorsers. This event has the potential to impact the value of FTX tokens and other related cryptocurrencies. Traders should closely monitor the developments regarding this lawsuit and its implications. Such lawsuits often lead to market volatility, and traders should consider this risk when making investment decisions. In summary, traders must be cautious when investing in assets associated with cryptocurrency exchanges that are involved in legal battles.
The Bottom Line
Shaq’s serving with a class-action lawsuit against FTX founder Sam Bankman-Fried is the latest in a series of events that have dramatically affected the cryptocurrency market. This event is likely to have significant implications for FTX tokens and other related cryptocurrencies. Traders in the market should be cautious and monitor the developments regularly. The legal battle could further harm the already volatile cryptocurrency market. Uncertainty regarding the outcome of the lawsuit could lead to fluctuations in the values of FTX tokens and similar cryptocurrencies. The Bottom Line is that the situation surrounding FTX is very unpredictable, and traders should be wary of trading in related assets.