Why have Tom Brady and Larry David been named in a class-action lawsuit against FTX cryptocurrency?

Cryptocurrency exchange FTX is going down, and it might just take several celebrities down with it.

The firm has several high-profile names attached to it, and stars like Larry David and Tom Brady might just face legal backlash due to their involvement with FTX. A class-action lawsuit attaches a number of major celeb names to it, and could lead to genuine repercussions for a number of involved parties. Here’s what you need to know about the FTX lawsuit, and the major celeb names attached to it.

Why is FTX involved in a lawsuit?

Cryptocurrency firm FTX is the target of a class-action lawsuit from a range of burned investors, after they put their faith in the exchange. The firm promoted an iron-clad business model that enticed a number of people to buy in, only to later watch it crumble as it seeks bankruptcy protection. The company and its founder, Sam Bankman-Fried, are now facing an investigation for “allegedly investing depositors funds in ventures without their approval,” according to AP.

The failed business is also headed toward a House Financial Services Committee hearing later this year, as the committee examines the culprits behind its failure, as well as any potential wrongdoing. The lawsuit, filed in the Southern District of Florida, has announced two attorneys on the case, with both Adam Moskowitz and David Boies named as representatives.

How are Larry David and Tom Brady involved?

The lawsuit could spell bad news for a number of FTX’s celebrity endorsers, including Tom Brady and Larry David. The footballer and Seinfeld creator were both featured in commercials and promotional materials for the firm, as were Shaquille O’Neal, Stephen Curry, Gisele Bündchen, Kevin O’Leary, Trevor Lawrence, David Ortiz, Udonis Haslem, and Naomi Osaka.

Each of the celebrity names attached to FTX could face legal repercussions, as the lawsuit alleges their involvement lended credibility to the failed exchange. The lawsuit claims that “part of the scheme employed by the FTX Entities involved utilizing some of the biggest names in sports and entertainment — like these Defendants — to raise funds and drive American consumers to invest… pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat.”

This won’t be the first example of celebrities facing legal pushback due to their involvement in cryptocurrency schemes. Both Kim Kardashian and Floyd Mayweather faced fines for their promotions of crypto, setting a precedent for the case being brought against David, Brady, and the like.