Friedberg supports FTX celebrity promoter lawsuit

In addition, Friedberg was included as a defendant in a revised complaint that was filed on the 16th of December.

Friedberg supports FTX celebrity promoter lawsuit
Friedberg supports FTX celebrity promoter lawsuit

Former compliance chief Daniel Friedberg is cooperating with a class action lawsuit against celebrities who allegedly promoted the insolvent FTX.

In a proposed amended complaint filed on May 11 in Florida District Court by class action attorneys, Friedberg was said to have provided evidence that promotional activity for FTX originated in the state.

Friedberg was the chief regulatory officer and chief compliance officer of FTX US, the United States branch of the exchange.

The declaration may refute a key defense raised by some of the defendants, namely that the Miami court lacks jurisdiction and the claims have no connection to Florida.

Friedberg stated in sworn testimony that FTX US’ vice president of business development, Avinash “Avi” Dabir, was based in Miami and was in charge of brand ambassadors for FTX, including defendants in the case such as former basketball player Shaquille O’Neal, comedian Larry David, retired NFL player Tom Brady, and FTX founder Sam Bankman-Fried.

He stated that Dabir operated out of an FTX office in Miami “early in 2021.” The class action attorneys stated that this contradicts the arguments made by the defendants in their dismissal motions.

Some of the alleged promoters claimed that “no conspiracy could have been ‘engineered in Florida‘ because FTX did not even plan to move to Miami until late September 2022,” which was before they entered into the alleged promotional contracts.

The class action attorneys are using the new evidence to amend their lawsuit to resolve the jurisdictional arguments raised by the defendants.

The court will determine the sufficiency of the evidence.

In mid-November, just after the collapse of the exchange, the lawsuit was initially filed.

Other alleged prominent promoters include Gisele Bündchen, Brady’s then-wife, entrepreneur Kevin O’Leary, and basketball player Steph Curry and his team, the Golden State Warriors.

Additionally, Friedberg was named as a defendant in an amended complaint on December 16.

According to reports, the former chief of compliance has assisted in other legal actions against the exchange where he previously worked.

A few weeks after the collapse of FTX, investigators from the New York District Attorney’s Office, the Justice Department, the Federal Bureau of Investigation, and the Securities and Exchange Commission allegedly received information from Friedberg.


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