FTX receives backup in its legal battle with celebrities.
Daniel Friedberg, crypto exchange FTX's former chief compliance officer, has joined the firm's side in the lawsuit against celebrities accused of promoting the bankrupt crypto exchange.
According to the complaint filed in a Florida District Court on May 11th, Friedberg provided evidence that the majority of FTX's promotional activity happened in Florida.
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The statement contradicts the defendants' claims that the Miami court lacks jurisdiction and the case has no association with the state.
During sworn testimony, Friedberg revealed that Avinash "Avi" Dabir, FTX US' vice president of business development, was located in Miami and oversaw the brand ambassadors, including celebrities such as Shaquille O'Neal, Larry David, Tom Brady, and FTX founder Sam Bankman-Fried.
Friedberg stated that Dabir operated from an FTX office in Miami in early 2021, refuting the defendants' argument that the alleged conspiracy could not have originated in Florida because FTX had no plans to move to Miami until late September 2022.
The class action lawyers intend to amend their lawsuit using this new evidence to counter the defendants' jurisdictional claims. Ultimately, the court will determine the sufficiency of the evidence presented.
It is worth noting that the lawsuit was initially filed in November, shortly after crypto exchange FTX filed for bankruptcy. At the end of November, authorities in Texas State Securities Board reportedly launched an investigation into several celebrities for their promotions of FTX.
Most recently, in mid-April, the lawyers behind FTX victims asked for NBA legend Shaquille O'Neal's "courtesy and honor" in accepting the legal complaint tied to the collapse of crypto exchange FTX.