Investors are suing the founder of crypto exchange FTX and celebrities who promoted it

Cryptocurrency investors in the United States are suing the founder of cryptocurrency trading platform FTX (FTX) Sam Bankman-Fried and several celebrities who promoted his exchange, including American comedian Larry David, Reuters reported.

The plaintiffs allege that, through fraudulent practices, Bankman-Fried and the celebrities sold profitable FTX digital currency accounts.

The class-action lawsuit, filed in a court in the US metropolis of Miami, alleges that the yield-bearing digital currency accounts at FTX were effectively securities, but were not registered and were being sold illegally in the US.

When the cryptocurrency exchange collapsed over concerns about the liquidity of its assets, US investors suffered $11 billion in damages, the lawsuit alleges. It seeks unspecified damages from Sam Bankman-Freed, as well as 11 athletes and other celebrities who promoted FTX.

Among them is the comedian Larry David, creator of the popular series “Seinfeld”. He starred in an FTX commercial that aired during the live broadcast of the 2022 National Football League Championship Final.

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