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A class action lawsuit against celebrities who allegedly promoted the now-bankrupt FTX won a collaboration with former head of the exchange, former head of compliance, Daniel Friedberg.
In a proposed May 11 amended complaint filed in Florida District Court by class-action lawyers, Daniel Friedberg provided evidence that FTX’s advertising activities are conducted from Florida.
Friedberg was Director of Compliance at FTX and Director of Compliance at FTX US, the exchange’s US division.
The declaration could potentially undermine a key defense made by some of the defendants who argued that the Miami court had no jurisdiction and the claims had nothing to do with Florida.
In testimony under oath, Friedberg said that FTX US Vice President of Business Development Avinash “Avi” Dabir was based in Miami and was responsible for representatives of the FTX brand, including those accused in the case, including former basketball player Shaquille O’Neal, comedian Larry David, former NFL player Tom Brady and FTX founder Sam Bankman-Freed.
We couldn’t keep it secret any longer! We’re partnering with…the one…the only…@SHAQ! (aka Shaqtoshi) pic.twitter.com/V37UQ5wsXI
— FTX (@FTX_Official) June 1, 2022
He said Dabir was working from FTX’s Miami office “in early 2021.” Lawyers for the class action said that this refutes the arguments put forward by the defendants in their motions to dismiss the case.
Some of the purported promoters claimed that “no plot could have been ‘planned in Florida’ because FTX didn’t even plan to move to Miami until late September 2022” before they entered into the alleged promotional deals.
Class action lawyers are using the new evidence to amend their lawsuit to try to satisfy the defendants’ jurisdictional claims.
The court will decide if there is enough evidence.
Related: Shaquille O’Neal claims process servers ‘thrown’ FTX legal documents at his moving car
The lawsuit was first filed in mid-November, shortly after the stock market crashed. Other alleged celebrity promoters include Brady’s then-wife and model Gisele Bündchen, entrepreneur Kevin O’Leary and basketball star Steph Curry along with his Golden State Warriors team.
We’re proud to announce Tom Brady will serve as an FTX Ambassador, and Gisele as FTX’s Environmental & Social Initiatives Advisor.
“We have the chance to create something really special here.” says the Super Bowl Champion and entrepreneur @TomBrady https://t.co/yDLC1Q1KFG
— FTX (@FTX_Official) June 29, 2021
Friedberg was also named as a defendant in the December 16 amended lawsuit.
The former head of compliance is said to have had a hand in other lawsuits against the exchange he worked for.
Investigators from the New York District Attorney, the Department of Justice, the Federal Bureau of Investigation (FBI), and the Securities and Exchange Commission (SEC) allegedly received details about FTX from Friedberg weeks after the stock exchange crashed.
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