FTX Lawsuit Takes an Intense Turn As Shaquille O’Neal Gets Served

• O’Neal is the only one among several celebrities that were roped in by the Sam Bankman-Fried-led platform FTX.
• The complaint listed several high-profile celebrities, including Tom Brady, Steph Curry, and Larry David, for endorsing FTX, although they have yet to be served.

Shaquille O’Neal Served with Class Action Lawsuit Against FTX

Shaquille O’Neal, the NBA superstar and current sports commentator, has been served with a class action lawsuit filed against FTX by its US-based customers. The customers allege that the crypto derivatives exchange has breached securities laws and engaged in fraudulent activities.

The lawsuit, which was filed in the Southern District of Florida, claims that FTX offered unregistered security-based swaps to US customers without complying with securities regulations. The plaintiffs claim that they suffered damages as a result of FTX’s alleged violations and are seeking damages in the form of compensation.

The lawsuit also names several other high-profile celebrities who endorsed FTX, including Tom Brady, Steph Curry, and Larry David. However, these individuals have not yet been served with the lawsuit.

The lawsuit against FTX is the latest in a series of legal challenges facing the cryptocurrency exchange. In February 2023, FTX agreed to pay $10 million to settle charges brought by the Commodity Futures Trading Commission (CFTC). The CFTC alleged that FTX had failed to register as a futures commission merchant and had engaged in market manipulation.

FTX has denied the allegations in the class action lawsuit and has said that it intends to fight the case. The company has also said that it is committed to complying with all applicable laws and regulations.

The case against FTX is still in its early stages, and it is unclear how it will be resolved. However, the lawsuit is a sign of the growing scrutiny that cryptocurrency exchanges are facing from regulators.

Here are some of the key allegations in the class action lawsuit against FTX:

• FTX offered unregistered security-based swaps to US customers without complying with securities regulations.
• FTX engaged in market manipulation by artificially inflating the price of cryptocurrency derivatives.
• FTX failed to disclose material information to its customers about the risks associated with trading cryptocurrency derivatives.

The plaintiffs in the lawsuit are seeking:

• Damages for the losses they suffered as a result of FTX’s alleged violations.
• An injunction prohibiting FTX from continuing to offer unregistered security-based swaps to US customers.
• A declaration that FTX’s conduct violated securities laws.

The outcome of the class action lawsuit against FTX is uncertain. However, the lawsuit is a sign of the growing scrutiny that cryptocurrency exchanges are facing from regulators.

The lawsuit is also a reminder of the risks associated with trading cryptocurrency derivatives. These products are complex and can be risky, and investors should carefully consider the risks before trading them.