FTX’s claims against Steph Curry, Tom Brady and other celebrities have been dismissed

A federal judge in Florida has rejected most of the claims against famous celebrities and YouTubers who promoted the now-deprecated cryptocurrency exchange FTX, including stars such as Tom Brady, Gisele Bundchen, Kevin O’Leary and Stephen Curry.

The ruling narrows the scope of a vast multi-district lawsuit that accuses them of using their fame to sell fraudulent platforms.

In an order filed Wednesday, US District Judge K. Michael Moore held that the plaintiff, a group of FTX investors, did not demonstrate that the celebrities had sufficient knowledge of FTX and CEO Sam Bankman-Fried’s misconduct.

The lawsuit stems from the catastrophic collapse of FTX in November 2022, wiping out billions of dollars in customer funds, causing investigations around the world. The plaintiffs accused the star of being paid millions of dollars to support FTX without disclosing financial incentives.

The judge dismissed almost all claims against “celebrity defendants.” These include Shohei Ohtani, Larry David, The Golden State Warriors, Udonis Haslem, David Ortiz and Naomi osaka.

The court also cleared “YouTuber Defendants” which include influencers who sold FTX through social media for most alleged claims.

Moore wrote that the plaintiff “cannot properly sue causality” and “failed to assert the defendant’s knowledge of FTX fraud as plausible.” He added that while celebrities may be “unknown, negligent, or even reckless,” the plaintiffs did not show that they had “knowings about FTX fraud” or that they had “necessary intentions to deceive or fraudulent investors.”

The judge also clarified the defendants in the allegations of the related civil conspiracy, writing, “The defendants cannot be held liable for the civil conspiracy simply by receiving payments and other financial benefits in exchange for their promotional content.”

The decision significantly reduces legal exposures among celebrities, but two claims for them remain active. Violations of the state securities laws of Florida and Oklahoma prohibit the sale of unregistered securities.

The plaintiffs may still correct their complaints and try again, the judge wrote, but they would need to present stronger evidence that would directly link the star to FTX misconduct.

The ruling comes after a prolonged legal battle that the plaintiffs allegedly claimed that celebrities and influencers are responsible for promoting unregistered securities and engaged in deceptive practices.

Brady and his ex-wife, Bünchen, appeared in a famous commercial for exchange in 2022. Curry and the Golden State Warriors also signed an approval agreement with FTX, but David appeared in a widely seen Super Bowl commercial for the platform.

Late last month, NBA star Shaquille O’Neal settled with a group of FTX investors who accused the failed Exchange scam of making it possible as a celebrity promoter.

The plaintiffs had sought a total loss of $21 billion from O’Neal and other promoters, but the terms of his settlement have not been made clear.