How Steph Curry's Endorsement Got Him Wrapped Up In A Lawsuit

In 2021, cryptocurrency was all the rave, and FTX was one of the leading players in the digital space. However, on November 11, 2022, the crypto exchange company announced that it filed for bankruptcy, following the resignation of its founder, Sam Bankman-Fried. "I'm really sorry, again, that we ended up here," Bankman-Fried tweeted. "Hopefully, things can find a way to recover. Hopefully, this can bring some amount of transparency, trust, and governance to them." Bankman-Fried continued his Twitter thread by suggesting the company would make a quick recovery, thanks to the help of attorney John J. Ray III.

FTX's downfall came just days after CoinDesk published a scathing article suggesting that Bankman-Fried's hedge fund, Alameda Research, participated in unethical business practices (via CNN Business). Furthermore, the Bahamas police department is now investigating FTX and Bankman-Fried for "criminal conduct" and has frozen the assets of FTX Digital Markets, an FTX subsidiary.

Now, the problems for the crypto giant are worsening, as its celebrity endorsers — like Steph Curry and Tom Brady — have been pulled into the messy financial debacle.

Steph Curry Is being sued for promoting FTX

In September 2021, Steph Curry announced that he was looking to invest in cryptocurrency. "Just getting started in the crypto game ... y'all got any advice," Curry tweeted, to his 17 million Twitter followers. Shortly after, Curry announced that he had officially joined forces with FTX as their Global Brand Ambassador and shareholder. "I'm excited to partner with a company that demystifies the crypto space and eliminates the intimidation factor for first-time users," Curry said in a statement to HypeBeast. "FTX is like-minded when it comes to giving back to the community in meaningful ways, and I can't wait to see what we can achieve together."

However, it now appears Curry's partnership has landed him in hot water. According to court documents obtained by TMZ, Curry — along with stars like Tom Brady and Gisele Bündchen — have been named in a class action lawsuit. The lawsuit suggests that FTX founder, Sam Bankman-Fried, used celebrity influence to encourage "unsophisticated investors" to join a "Ponzi scheme."

The complaint also points to commercial advertisements used to sway potential customers. And while Curry has never appeared in any promotional content for the exchange company, he did serve as one of the company's "ambassadors."