- FTX's former compliance chief is cooperating with a lawsuit against celebrities who promoted the exchange.
- Dan Friedberg provided evidence showing that important FTX promotional activity happened in Florida, according to an amended complaint filed late Thursday.
The case against Tom Brady, Shaquille O'Neal, and other celebrities who promoted FTX has gained the cooperation of the failed crypto exchange's ex-compliance chief Dan Friedberg, according to an amended complaint filed late Thursday.
Friedberg provided evidence showing that important FTX promotional activity took place in Florida, the May 11 filing said – even though some of the defendants have claimed they shouldn't be targets of the lawsuit because they don't reside in the Sunshine State.
The complaint alleges that 11 individuals – including Brady, O'Neal, comedian Larry David and tennis superstar Naomi Osaka – and the Golden State Warriors all promoted unregistered securities by serving as brand ambassadors for FTX.
Plaintiffs assert that under Florida law, the celebrities and the Warriors are liable for the losses that customers suffered when FTX-listed cryptocurrencies tanked in value.
They're seeking billions of dollars worth of damages.
The Warriors, David, Osaka, former NBA MVP Steph Curry and two-way MLB superstar Shohei Ohtani contend that the lawsuit has no "personal jurisdiction" over them because none of their contract signings, ad tapings or other activities on behalf of FTX happened in Florida.
"I did not appear in Florida on behalf of any FTX entity nor did I take any action in the State of Florida related to the advertising contract," David said in a declaration filed last month.
But the evidence provided by Friedberg shows that "there appears to be no state that has more connections to the FTX brand ambassador defendants" than Florida, according to Thursday's amended complaint.
Friedberg was a defendant in the original complaint but agreed to cooperate with plaintiffs in exchange for being freed from liability.
He was chief regulatory officer for FTX and chief compliance officer for the failed exchange's US arm before resigning in November 2022 as Sam Bankman-Fried's crypto empire imploded.
The 12 defendants named in the lawsuit are Brady, his ex-wife Gisele Bündchen, Curry, David, the Warriors, NBA player Udonis Haslem, Jacksonville Jaguars quarterback Trevor Lawrence, Ohtani, "Shark Tank" star Kevin O'Leary, O'Neal, former MLB star David Ortiz, and Osaka.