FTX Investors Add MLB and Formula 1 to Class-Action Lawsuit

4
B2B

Millions of dollars were lost by investors when the cryptocurrency exchange FTX crashed, and now those investors have added the Mercedes-Benz Group AG racing teams, Major League Baseball (MLB), and Formula 1 teams to their case.

Bloomberg reported on Tuesday, Nov. 28, that the investors have joined the class-action lawsuit involving celebrity promoters by claiming that these companies assisted and promoted FTX’s fraudulent activities.

The research claims that investors lost at least $11 billion as a result of the FTX crisis. The company’s founder, Sam Bankman-Fried, was convicted guilty of fraud and conspiracy on November 2.

Investors have filed a class-action lawsuit against FTX and its celebrity marketers as a consequence, claiming that they were complicit in the fraudulent activities, according to the newspaper.

Regarding the assertion, in 2021 the MLB was the first significant sports league to execute a promotional partnership with FTX. MLB umpires were once observed sporting FTX patches on their sleeves. FTX also engaged into promotional partnerships with Mercedes-Benz and Formula 1, and the racing team’s cars were marked with FTX branding.