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Implosion of Crypto Firm Draws Suit Against Athlete Brand Ambassadors

Following the recent crash and bankruptcy filing of cryptocurrency platform FTX, an investor has filed a proposed class action seeking damages from defendants including superstar athletes who promoted the company as brand ambassadors.

Many legal experts believe the sports figures probably won’t be held liable for crypto investors’ losses, particularly in light of the recent dismissal of a similar putative class action. However, as partners terminate their deals with FTX, marketers are wondering if FTX’s implosion will sour the sports world on the burgeoning cryptocurrency industry.

In this Chicago Daily Law Bulletin article written by Loeb Advanced Media & Technology partners Douglas Masters and Seth Rose, the authors discuss the impact of cryptocurrency FTX’s bankruptcy filing on high-profile sponsorships in the sports world and the development of recent class action lawsuits.