Home » Tom Brady and Gisele Bundchen named in lawsuit against FTX

Tom Brady and Gisele Bundchen named in lawsuit against FTX

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New York
CNN business

The epic implosion of cryptocurrency giant FTX has triggered a far-reaching cascade of effects. With a tangled list of celebrities who have endorsed the now-defunct platform, the financial contagion has spread to other companies across the vast array of cryptocurrencies and digital assets. ecosystem.

On Wednesday, the lending arm of crypto broker Genesis suspended redemptions and new loan launches after an “abnormal” number of withdrawal requests exceeded current liquidity. Failure of FTX.

Genesis said it is working with advisers to “explore all possible options,” adding that it will announce plans for its lending business next week. “We are working tirelessly to identify the best solutions for our lending business, including, among other things, new liquidity sources,” the company said.

Genesis’ lending arm had about $2.8 billion in active lending in the third quarter, according to its website.

Suspension comes as a whole The crypto industry is in crisis Following the unraveling of Sam Bankman-Fried’s FTX exchange and Alameda Research hedge fund, both filed for bankruptcy late last week.

“In the world of cryptocurrencies, the moment a company or corporation announces ‘temporarily suspend withdrawals’ — wow.” Daniel Roberts,Editor-in-chief Decryption of media, a crypto-focused news outlet. “You’re putting them on death watch now…somebody says ‘we’re stopping withdrawals’ and then they say ‘OK, we’re restarting withdrawals. It’s okay’ It’s rare.”

That “death watch” isn’t unique to Genesis.

Shortly after the company suspended withdrawals, one of its partners, Gemini, a cryptocurrency company founded by Tyler and Cameron Winklevoss, warned customers that redemptions under the Earn program would be delayed.Gemini said it worked Worked with Genesys to help customers redeem funds from the program. This allowed customers to earn interest on crypto assets. No other Gemini products or services were affected, according to the company.

Meanwhile, BlockFi, another big player in the cryptocurrency industry, suspended withdrawals last week as FTX was dismantled. On Tuesday, The Wall Street Journal reported that BlockFi is gearing up. Possibility of filing for bankruptcy.

And legal issues abound for FTX founder Bankman-Fried, who stepped down as CEO last week.

On Wednesday, FTX investors sued Bankman-Fried, as well as several celebrities who have backed the platform, including Tom Brady, Gisele Bundchen and Steph Curry. “The deceptive FTX platform maintained by the FTX entity was really the house of cards,” states the proposed class action lawsuit.

Prominent attorneys Adam Moskowitz and David Boies filed a lawsuit on behalf of FTX customer Edwin Garrison.

Moskowitz, a Florida attorney, is behind a class action lawsuit against crypto broker Voyager Digital, which also filed for bankruptcy earlier this year.Boies represented Vice President Al Gore in the 2000s. is probably best known for bush vs gore.

In an email to CNN Business, Moskowitz claimed that FTX is a “bigger Ponzi scheme than a Madoff scheme.”

“FTX was a public relations and marketing genius and knew that… [it] Only with the help and promotion of some of the most famous, respected and loved celebrities and influencers in the world have we been able to succeed,” Moskowitz wrote.

Representatives for Brady, Bündchen and Curry did not immediately respond to CNN Business’ request for comment.

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