Canadian resident Elliott Lam filed a lawsuit against former FTX CEO Sam Bankman-Fried, former Alameda Research head Caroline Ellison, and the NBA’s Golden State Warriors for alleged false advertising. The Block reports.
The suit was filed in the Southern District of San Francisco (California, USA). The plaintiff relies on state laws prohibiting false statements in advertising.
As a result, “Miami Heat” and “Washington Capitals” are not named as defendants, with which the failed company had also collaborated.
The filing states that FTX’s advertising campaign featuring a number of professional teams and venues portrayed the platform and its revenue accounts as ‘safe investments’. The collapse of the exchange showed that such statements were not accurate.
Earlier, a group of American investors filed a lawsuit against Bankman-Fried, alleging violations of Florida state law concerning the platform’s savings accounts.
Lawyers surveyed by Fortune said that the U.S. Department of Justice has what it takes to bring criminal charges against Bankman-Fried and other executives of the failed exchange.
In August, FDIC directed FTX US to issue a demand letter demanding immediate measures to correct misleading statements about deposit insurance.
In October, the financial regulator and the Texas attorney general alleged that the U.S. unit violated securities laws.
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