As FTX plans to reboot as early as April 2021, influencers promoting the troubled firm continued to get served while advisors pocket millions
A handful of influencers famed for their personal finance expertise on YouTube are being chased hard by victims who lost their fortunes in FTX’s collapse.
One such is crypto YouTuber Tom Nash – he was served a lawsuit through a tweet after a Florida district court judge granted the Moskowitz Law Firm permission for the action.
Served on Twitter
Nash, a Sydney resident, is among ten defendants named in a class-action lawsuit that claims influencers played a “major role” in the FTX scandal. It also states that the crypto exchange wouldn’t have risen to such heights without their backing and “hype.” Despite promoting and being “handsomely” paid in return, these influencers have failed to disclose their compensation.
@iamtomnash, per the authorization of the Court presiding over the pending class action against you in the Southern District of Florida, you have been served: https://t.co/28YJQ2sKY5— The Moskowitz Law Firm (@moskowitzesq) May 2, 2023
Nash was the only holdout among the various defendants, some of which include Kevin Paffrath, Graham Stephan, Andrei Jikh, and Jaspreet Singh, among others.
Advisors Raking in Millions
FTX collapsed over ten days last November with its disgraced CEO Sam Bankman-Fried on house arrest ahead of a trial in October. The former exec is accused of being a mastermind in a yearslong fraud of using billions of dollars of FTX customer funds for personal expenses and high-risk bets through the exchange’s sister trading house, Alameda Research.
Victims have lost million of funds as a result, but the advisers overseeing the ruins of the FTX Group will reportedly rake in $103 million over the first quarter.
New York-based Sullivan & Cromwell has billed the biggest invoice of $14.1 million in fees and expenses for March, taking its total all the way to $44.4 million in Q1.