A recent lawsuit filed by a group of FTX users alleges that the Mercedes-AMG Petronas F1 Team and Major League Baseball (MLB) played a role in facilitating fraud through their promotional partnerships with the crypto exchange, FTX.
These twin class-action lawsuits, filed in a Florida district court on November 27, accuse the organizations of aiding and abetting FTX Group’s massive global fraud, as well as promoting unregistered securities.
In 2021, Mercedes F1 entered into a promotional agreement with FTX, prominently displaying the exchange’s logo on various assets, including cars, uniforms, and hats.
In a groundbreaking move, MLB also signed a similar deal with FTX, becoming the first professional sports league to do so.
MLB umpires even wore FTX’s logo on their uniforms, marking a historic departure from tradition.
The class complaint filing highlights that the inclusion of FTX.US patches on MLB umpire uniforms represented a significant milestone in the sport’s long history.
Similarly, Mercedes F1 prominently featured FTX’s logo on its cars, merchandise, and marketing materials.
READ MORE: Submit A Press Release to Bloomberg & Yahoo Finance
The lawsuit suggests that FTX regularly cheered on and congratulated Mercedes F1 and its drivers, creating an illusion of trustworthiness among fans.
The same group of FTX users is pursuing legal action against celebrities who endorsed the exchange, including former sports stars like Shaquille O’Neal and Tom Brady, on similar grounds of promoting unregistered securities.
Some of these celebrities have sought to dismiss the lawsuits, asserting that they did not encourage users to deposit money on FTX.
However, a few, such as American footballer Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash, have reached settlements in their respective cases.
In a significant development, FTX’s founder and former CEO, Sam Bankman-Fried, faced convictions on seven charges related to fraud, conspiracy, and money laundering in November.
Furthermore, just a year after sealing their partnership deals, both MLB and Mercedes F1 terminated their contracts with FTX in 2022.
MLB ended its five-year promotional agreement with FTX shortly after the exchange filed for bankruptcy, while Mercedes F1 severed ties with FTX and removed its logo from its cars and merchandise.
These lawsuits and actions by prominent organizations and individuals underscore the growing legal scrutiny surrounding the cryptocurrency industry and its partnerships, as regulators and investors seek to ensure compliance and accountability.
Discover the Crypto Intelligence Blockchain Council
