Several YouTube bloggers faced a class-action lawsuit for “active promotion” the collapsed cryptocurrency exchange FTX. As reported by The Block.
Among the defendants are attorney Erika Kullberg, Ben Armstrong (also known as BitBoy), and the owner of the Meet Kevin channel, Kevin Paffrath. The complaint notes that FTX “generously” paid influencers who did not disclose the nature of their relationships with the exchange.
According to the complaint, some of them cleaned their YouTube channels of all videos endorsing the exchange and praising Sam Bankman-Fried.
“Yes, FTX used to sponsor me. I think this is a disgrace. And it’s a stain on me. People were harmed because of FTX, and that’s bad,” Mr. Paffrath said in one of his videos, according to the complaint.
The plaintiffs come from several countries. They are represented by attorney Adam Moskowitz of the law firm Moskowitz.
In September 2022, Moskowitz filed a civil suit against Mark Cuban for promoting unregulated crypto products Voyager and participating in a Ponzi scheme with its CEO Steven Ehrlich.
As reported in March 2023, Sam Bankman-Fried stated his intention to use directors’ and officers’ liability insurance to pay legal bills.
Earlier, experts estimated the costs of the legal representation in the company’s bankruptcy at $20 million.