Several finance YouTubers, including Meet Kevin, Graham Stephan, and Ben Anderson, are facing a $1 billion lawsuit over their promotion of the collapsed crypto company FTX. The lawsuit was filed in the Southern District of Florida by FTX investors from around the world, alleging that the influencers promoted and assisted in the sale of unregistered securities.
FTX was declared bankrupt in November 2022, with its founder stepping down as CEO. Investors rushed to withdraw their money, leading to the collapse of the company. Later, it was revealed that customer funds were being transferred to Alameda Research, owned by Bankman Fried. Bankman Fried was arrested in the Bahamas, where FTX was based, on charges of defrauding customers, violating campaign finance laws, and money laundering.
The lawsuit alleges that some of the creators "have now scrubbed their YouTube channels of all video clips endorsing FTX and praising Sam Bankman-Fried."
Read more: https://t.co/k29rS8Lmkz
— unusual_whales (@unusual_whales) March 16, 2023
Influencers Held Accountable
Kevin, who has a following of 1.4 million, defended himself against the lawsuit, stating that he did not have any responsibility or gain from anyone’s loss. However, viewers had mixed reactions to his response, with some praising his transparency while others felt that content creators should be more careful about whom they endorse, especially if they are paid for their endorsements.
The lead plaintiff in the case, Oklahoma resident Edwin Garrison, is being represented by attorney Adam Moskowitz. Moskowitz stated that influencers are paid similarly to other promoters and must be held accountable for their actions. This lawsuit is not the first of its kind, as many lawsuits have surfaced following problems with cryptocurrency trading platforms. To prevent such situations from occurring, it is important to address the problem before these platforms declare bankruptcy and disappear.
***
