Former NBA star Shaquille O’Neal and professional tennis player Naomi Osaka may avoid being held liable in a class-action lawsuit against cryptocurrency exchange FTX for failing to provide timely notice.
According to the March 9 order, U.S. District Judge Kevin Moore said it was unclear whether O’Neill and Osaka had received notice of the lawsuit. Therefore, the judge asked the plaintiff to explain why the sports star should not be dismissed.
What Are Shaquille O’Neal And Naomi Osaka Accused Of?
Shaquille O’Neal and Naomi Osaka, along with other sports stars and TV actors, may be accused of promoting a “fraudulent scheme” through cryptocurrency exchange FTX to take advantage of retail investors with little knowledge of the cryptocurrency world.
Other celebrities accused of fraud include NFL superstar and seven-time ring winner Tom Brady, who acquired a large stake in FTX and became a partner in the company through a media deal, he and his wife, according to Bloomberg. Support for the promotion of the platform is provided in the agreement.
Brady received 1.1 million shares of FTX stock, with a market value of about $45 million. Meanwhile, his wife got a stake worth about $25 million.
Both investments became nearly worthless overnight as the Sam Bankman-fried empire collapsed, and he was charged with multiple financial fraud charges related to the bankruptcy of FTX and its subsidiaries, including trading firm Alameda Research. House arrest pending trial.
Unlike Brady, a well-known cryptocurrency enthusiast and promoter, Shaquille O’Neal said that he is only a paid spokesperson and is not as passionate about cryptocurrency as other stars. He even said in 2021 that cryptocurrencies seem “too good to be true.”
This may be one of the reasons Judge was less aggressive with Shaq.
Litigation against FTX promoters will proceed as scheduled
Judge Kevin Moore said the proceedings would proceed as scheduled because the defendants (Tom Brady, Gisele Bundchen, Kevin O’Leary and Trevor Lawrence, among others) should not have asked for an adjournment of the meeting. Plaintiffs who have not done so are the ones responsible for making that request.
On March 8, the judge dismissed a request to join other lawsuits against FTX, arguing that the defendants had not yet appeared in court to be responsible for their crimes.
According to CryptoPotato, due to the lack of evidence that Sam Bankman-Fried participated in the FTX million-dollar scam and four new charges of fraud and money laundering (in addition to the eight he already has).
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