NFL quarterback Trevor Lawrence has reached a settlement in a lawsuit involving FTX. This follows a trend of celebrities settling similar cases involving FTX promotions, including YouTubers Kevin Paffrath and Tom Nash.
As Sam Bankman-Fried readies himself for a trial defense in Manhattan next month, court documents reveal that three celebrity promoters associated with his unsuccessful FTX cryptocurrency exchange have chosen to reach a settlement in the case. The lawsuit relates to the sponsorship deals struck by the trio before the crypto exchange FTX went bankrupt the last year.
NFL team Jacksonville Jaguars’ quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, have agreed to settle the case under undisclosed terms. The final court order, confirming the settlement and removing them from the case, is pending approval from US Judge K. Michael Moore.
Additionally, several other celebrities, including Shaquille O’Neal, Tom Brady, Gisele Bundchen, and Steph Curry, have faced legal action for promoting FTX. The lawyers leading the case against these celebrities have disclosed that they are currently involved in confidential discussions, and there is a high probability of further settlements with FTX in the near future, as per court documents.
Prior to FTX’s collapse, Trevor Lawrence had entered into a sponsorship agreement with Blockfolio, which was an FTX subsidiary, in 2021. As revealed in a filing related to the FTX lawsuit submitted to the US Bankruptcy Court on August 31, Lawrence received a sum of $205,555.35 from Blockfolio.
During that period, FTX’s then-COO, Sina Nader, emphasized that sponsorships involving Lawrence and other celebrities played a crucial role in breaking down societal barriers related to cryptocurrency, making it more widely accepted.
Lawrence himself had expressed his trust in Blockfolio as a long-term partner in the cryptocurrency space when the Blockfolio deal was announced.
Additionally, the recent court filing shows the dismissal of crypto influencer Ben “BitBoy” Armstrong from the case. Armstrong “has not served an answer or motion for summary judgment,” the filing says.
YouTuber Nash and Praffath’s Association with FTX
Initially, Tom Nash, an Australian citizen, did not respond to the lawsuit. As a result, attorney Jonathan Moskowitz sought permission from a federal judge to serve the lawsuit via a tweet.
Kevin Paffrath, another influencer boasting 1.88 million subscribers on his ‘Meet Kevin’ YouTube channel, publicly acknowledged his previous sponsorship by FTX in a video on November 17, 2022. He expressed regret about this association, describing it as a “scar”.
On March 16, following his inclusion in Jonathan Moskowitz’s class-action lawsuit, Paffrath released a second video in which he reiterated his attribution of the fraud to SBF. He vehemently dismissed any notion that influencers played a role in the losses resulting from FTX’s fraudulent activities, considering such claims “ludicrous”.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
