Crypto Updates

NRL and Youtube stars reach settlement in FTX class-action lawsuit: Report

NRL and Youtube stars reach settlement in FTX class-action lawsuit: Report

NRL quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash have reportedly settled a lawsuit over alleged inadequate compensation disclosure in their promotions for the now-defunct FTX crypto exchange.

According to a Sept. 16 Bloomberg report, the three high-profile individuals have entered proposed agreements, however the settlement terms were not disclosed.

These are the first high-profile celebrities to reach a settlement in the class-action lawsuit, following accusations against numerous influencers and celebrities for endorsing the now-defunct crypto exchange without the necessary disclosures.

Related: Influencer served settlement demand via NFT following $7M token presale

Other celebrity defendants in the class-action lawsuit includ Tom Brady, Gisele Bündchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka and David Ortiz

Paffrath and Nash are among eight Youtubers also being sued in the lawsuit, Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre and Erika Kullberg.

The talent management company behind the promotion of FTX, Creators Agency LLC are also named in the lawsuit.

On March 15, the class-action lawsuit was filed, claiming that the influencers inadequately disclosed the true nature of their FTX, which was, in fact, paid content rather than content stemming from genuine discovery:

“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments and compensation, nor conduct adequate (if any) due diligence.”

Magazine: Tencent’s AI leviathan, $83M scam busted, China’s influencer ban: Asia Express