Formula 1 sued for fraud after promoting FTX cryptocurrency and company collapse

Formula 1 sued for fraud after promoting FTX cryptocurrency and company collapse

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La Fórmula 1 es demandada por fraude al promocionar la criptomoneda FTX habiendo colapsado la compañía

Cryptocurrencies became a hot topic when the COVID-19 pandemic entered our lives. As people were locked at home and many lost their jobs, the perfect situation arose for cryptocurrencies and mining to experience their greatest moments. Consequently, we witnessed the rise and subsequent decline of cryptocurrencies, with several companies going bankrupt. FTX was one of them, and now MLB, Mercedes-Benz Group AG, and F1 have been sued for promoting the FTX cryptocurrency.

FTX, one of the most significant cryptocurrency exchange platforms globally, announced its bankruptcy in late 2022 when cryptocurrency values decreased and a fraud case was exposed. Before this, FTX and Binance had a dispute that caused a massive drop in cryptocurrency values, and customers began withdrawing funds. It was revealed that FTX had enormous debts it couldn’t pay and was accused of operating on a massive Ponzi scheme.

F1, Mercedes-Benz, and MLB have been sued for FTX fraud

FTX was accused of achieving success due to influencers and brands promoting their cryptocurrencies. In fact, a few months after its bankruptcy, the influencers faced a multimillion-dollar lawsuit for promoting the buying and selling of these cryptocurrencies. Considering FTX’s founder, Sam Bankman-Fried, has recently been convicted of fraud and is to spend over 100 years in prison, it is clear that the exchange was a scam.

The influencers have already been sued, and now it’s the brands’ turn. MLB (Major League Baseball), F1, and Mercedes-Benz Group AG have been sued for promoting the FTX cryptocurrency. FTX investors filed the lawsuit, accusing these entities of helping to cause €11 billion in fraud.

All entities cut commercial ties when FTX collapsed in 2022

MLB was the first major sports league to sign an agreement to promote FTX in 2021. At one point, MLB umpires wore FTX advertisements on their shirts. F1 drivers displayed the logo on their caps, while the racing cars also promoted the brand. Investors blame these entities for losing €11 billion after FTX’s collapse and, factoring in the sports celebrities involved, we can discern the vast promotional network the company had.

Among those named from MLB are former NFL Super Bowl player Tom Brady, current American League Most Valuable Player Shohei Ohtani, and renowned NBA player Steph Curry. MLB signed a five-year agreement, but it ended almost a year after the promotion, when the company went bankrupt. The Mercedes-Benz team had an agreement from September 2021 until 2022 when they removed the logos from their cars.

The article “Formula 1 is sued for fraud for promoting FTX cryptocurrency after the company’s collapse” first appears on El Chapuzas Informático.

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