NFL quarterback Trevor Lawrence, well-known YouTube stars Kevin Paffrath and Tom Nash, have decided to resolve a legal dispute over their promotional efforts for the now-defunct cryptocurrency exchange FTX.
The three famous people have decided to settle the case, even without making public the specific terms of the settlements.
Judge K. Michael Moore of the United States must yet approve the final court order formalizing the settlements.
Confidential negotiations are still taking place, according to attorneys engaged in the case, suggesting that there may be additional settlements in the future.
Ben “BitBoy” Armstrong, a prominent crypto influencer, has been removed from the case after failing to serve an answer or a motion for summary judgment, according to a court document.
These people’s high-profile sponsorship agreements with FTX before the exchange’s collapse last year are what prompted the legal lawsuits.
Lawrence, the NFL quarterback for the Jacksonville Jaguars, faces accusations of deceiving FTX investors.
He apparently paid an unknown sum to settle the lawsuit. Lawrence had received $205,555.35 from Blockfolio, an FTX company, in 2021, it was disclosed in a filing made on August 31 with the U.S. Bankruptcy Court.
According to a class-action lawsuit the Moskowitz Law Firm filed against him and other influencers in March, Tom Nash, a well-known YouTube influencer, received money from FTX for the purpose of endorsing products.
The legal action against Lawrence, Paffrath, and Nash is a component of a larger case against public figures who marketed FTX.
These three people are part of a bigger group of celebrities that FTX employed before to its demise.
In addition to Naomi Osaka, who also backed the trade, legal action is currently targeting former NBA player Shaquille O’Neal, former NFL quarterback Tom Brady, Tom’s ex-wife Gisele Bundchen, and tennis player Naomi Brady.
Nash, like other influencers, took down content about FTX and its founder, Sam Bankman-Fried, from his channels after the company’s demise.
Australian national Nash originally did not reply to the lawsuit, which prompted Moskowitz to ask to serve Nash via Twitter.
In a video posted in November 2022, Kevin Paffrath, well-known for his 1.88 million-subscriber YouTube channel “Meet Kevin,” officially acknowledged his prior sponsorship by FTX and expressed sorrow for his affiliation with the exchange. He stressed how important it is for creators to talk about this and learn from mistakes.
An important turning point in the ongoing story of the collapse of the FTX exchange is the settlement of these claims. The settlement of the lawsuits brought against Lawrence, Paffrath, and Nash will help put an end to the complex legal problems that have arisen since FTX’s demise.
The repercussions of the demise of the FTX exchange serve as a stark reminder of the risks associated with celebrity sponsorships. It also emphasises how crucial it is to uphold moral and legal requirements.