FTX Users Press Fraud Charges Against MLB and Mercedes F1

A group of FTX users has filed class-action lawsuits against Mercedes F1 and Major League Baseball for promoting FTX on their platforms. They believe this was tantamount to helping the exchange commit fraud, Bloomberg reported.

Aiding and abetting charges filed

The two class-action suits were filed on November 27 in a Florida District Court. The former users accuse the companies of promoting unregistered securities and “aiding and abetting and/or taking an active part in FTX’s enormous, multibillion-dollar global fraud.”

High-profile promoting makes F1 and MLB accomplices

FTX’s logo appeared on Mercedes F1 cars, team uniforms, and hats after Mercedes F1 signed a promotional deal with the exchange in 2021. That same year, MLB’s umpires’ uniforms started to feature the logo. MLB was the first pro sports league to conclude such an agreement.

The lawsuit against Mercedes F1 took a similar turn. F1 displayed FTX’s logo prominently on vehicles and merchandise. What’s more, the exchange’s public support for Mercedes F1 and its drivers built a “veneer of trustworthiness with Mercedes F1 fans,” according to the complaint. Parallel to this, F1 promoted FTX, making the scheme extremely effective.

Celebrities facing lawsuits

The same group of FTX users is suing prominent former athletes like Shaquille O’Neal and Tom Brady on similar accusations. Some of the celebrities named as defendants have tried to get the lawsuits dismissed. YouTuber Tom Nash and professional American footballer Trevor Lawrence have settled their lawsuits, among others.

The consequences of FTX’s collapse

Ex-CEO and founder of FTX Sam Bankman-Fried was convicted of seven charges relating to fraud, conspiracy and money laundering. After his company went under in November last year, MLB canceled the parties’ five-year promotional contract. Also last year, Mercedes F1 scrapped the deal and removed FTX’s logo from its cars and merchandise.