FTX users name Mercedes F1 team and MLB in new promotional lawsuits
According to a new indictment by a group of FTX users, the Mercedes-Benz Formula One team and Major League Baseball helped cheat FTX in promotional deals with the crypto exchange.
The plaintiffs, made up of FTX users, filed twin class-action suits in a Florida district court on Nov. 27, accusing the companies of “actively participating in FTX Group's massive, multibillion-dollar global fraud.” Promotion of unregistered securities.
In the year In 2021, the Mercedes F1 team signed a promotional deal with FTX, which saw the exchange's logo emblazoned on cars, uniforms, helmets and other materials. MLB signed a similar agreement that year — the first sports league to do so — that saw umpires wear the FTX logo on their uniforms.
“The central and most important feature of the partnership, however, was the inclusion of FTX.US patches on all MLB umpire uniforms,” the class complaint wrote. “The FTX.US patch marks the first time in MLB history that the sponsor's brand logo appeared on umpire uniforms in the 1800s.”
The rare dual logo shot https://t.co/OLE7P8iY1N
— FTX (@FTX_Official) July 18, 2021
The same complaint was made against Mercedes F1, where the team displayed the FTX logo in prominent places on its car, merchandise and marketing.
FTX has “always cheered and congratulated” Mercedes F1 and its drivers, the suit said, creating “loyalty among Mercedes F1 fans”.
“Without Mercedes F1's parallel FTX promotions, this strategy would not have been effective,” he complained.
Details @FTX_Official pic.twitter.com/3trhANWTCV
— Mercedes-AMG PETRONAS F1 Team (@MercedesAMGF1) September 24, 2021
The same group of FTX users is suing a list of celebrities who promoted the exchange, citing similar allegations of promoting unregistered securities, including former sports stars Shaquille O'Neal and Tom Brady.
Many celebrities involved in the lawsuit have tried to dismiss the lawsuit, saying they did not encourage investing in FTX. At least three – professional American football player Trevor Lawrence and YouTubers Kevin Paffraz and Tom Nash – have filed lawsuits.
Related: SEC still looking for FTX-style fraud at Binance.US: Report
FTX founder and former CEO Sam Bankman-Fried was indicted in early November on seven counts of fraud, conspiracy and money laundering.
Just over a year after entering into the deal, MLB renewed its five-year promotional contract with FTX shortly after the company filed for bankruptcy in November 2022.
Mercedes F1 also ratified its agreement with FTX the same year and removed the logo from its cars and merchandise.
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