A class action lawsuit targeting celebrities accused of promoting the FTX platform has just received support from a former exchange executive, Daniel Friedberg. His testimony could strengthen the allegations of the class action and call into question the defense of the defendants.
The key testimony of Daniel Friedberg
Class action attorneys against FTX have revealed that Daniel Friedberg provided new evidence. These establish that some FTX promotional activities were organized from Florida. Indeed, Friedberg is a former FTX US compliance officer. In this capacity, he holds crucial information concerning the activities of the now bankrupt exchange.
In his affidavit, he stated that FTX US Vice President of Business Development, Avinash “Avi” Dabir, was based in Miami. It was therefore from this city, according to Friedberg, that Dabir supervised for FTX the operation of celebrity recruitmentincluding some that are the subject of the class action.
He also revealed that Dabir operated from an FTX office in Miami as early as early 2021. Yet the defense argued that FTX only planned to move to Miami in September 2022.
Implications for the ongoing trial
These revelations could have significant implications for the ongoing trial. Indeed, the defendants claimed that the Miami court did not have jurisdiction. According to them, the allegations had no connection with Florida.
However, the evidence provided by Friedberg clearly establishes a connection between FTX’s promotional activities and the State of Florida, thus calling into question the defense of the defendants.
The class action attorneys plan to use this new evidence to amend their complaint and address the defendants’ jurisdictional claims. Then, the court will determine if the evidence is sufficient to continue the trial.
Implications of the FTX lawsuit for the crypto industry
This lawsuit is of considerable importance for the entire crypto sector. He could also put on the table the responsibility of celebrities in the promotion of cryptocurrency projects.
If the class action succeeds in proving that the promoters had knowledge of FTX’s financial problems and did not disclose this information, it could pave the way for other similar lawsuits against public figures involved in promoting FTX. crypto businesses.
FTX’s bankruptcy has left many investors hurt. The cooperation of Daniel Friedberg, as a former executive of FTX, reinforces the credibility of collective action and provides tangible evidence to substantiate the plaintiffs’ allegations.
The court’s decision regarding Miami’s jurisdiction and the continuation of the lawsuit will have significant implications. If the collective action progresses, it will send a clear message to celebrities as well as crypto influencers. In the future, they could pay more attention to project risks which they promote.
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