A Handful of YouTubers in Hot Water After Lawsuit from FTX Scandal Victims
Several influencers known for their personal finance expertise on YouTube are being pursued by victims of FTX’s collapse after they allegedly played a major role in the scandal. Crypto YouTuber Tom Nash, who was served with a lawsuit through a tweet, is among ten defendants.
Lawsuit Filed on Twitter
The Moskowitz Law Firm was authorized by a Florida district court judge to take action against Nash and nine other defendants in a class-action lawsuit that claims influencers did not disclose their compensation while endorsing and promoting the FTX exchange. Nash was served on Twitter while the other defendants, including Ben Armstrong (also known as BitBoy Crypto) and Kevin Paffrath, were also named but Armstrong has reportedly missed a court appearance and allegedly harassed the legal team with phone calls and tweets. The law firm successfully banned him from tweeting about the case and the plaintiffs.
Collapse and Advisors Raking in Millions
FTX group collapsed due to the alleged fraud of using billions of dollars of FTX customer funds for personal expenses and high-risk bets. Its CEO, Sam Bankman-Fried, is under house arrest ahead of a trial in October. While victims have lost millions as a result of the collapse, the advisers monitoring the ruins of FTX Group will reportedly be paid $103 million in the first quarter. Five law firms overseeing the collapse have billed FTX a total of $36.4 million in March alone, with Sullivan & Cromwell billing $14.1 million and taking its Q1 total to $44.4 million.