Several influencers present on social networks and on the YouTube platform are being sued by investors who accuse them of having improperly promoted FTX without declaring their compensation. The plaintiffs are seeking more than $1 billion in financial compensation and allege that the unregistered securities promoted by the defendants were those of a “fraudulent scheme designed to take advantage of investors around the world.”
Influencers in the sights of harmed investors
On Wednesday, several plaintiffs filed a lawsuit against various influencers present on social networks and on the YouTube platform, accusing them of improperly promoting FTX without declaring their relative compensations.
The influencers targeted by the complaint all have at least several hundred thousand subscribers on their respective networks, and some even have several million. We find among them, among others, Graham Stephan, Kevin Paffrath (better known under the pseudonym Meet Kevin), Andrei Jikh, Jeremy Lefevbre or even Ben Armstrong (who bears the pseudonym Bitboy).
According to the document filed by the plaintiffs, these influencers would have largely helped FTX rise to the role of top-tier cryptocurrency exchange :
“The rise of the internet and social media has spawned a new multi-billion dollar cottage industry, that of ‘influencers’. In fact, FTX could not have reached such heights without the massive impact of these influencers, who promoted the deceptive FTX platform in exchange for undisclosed payments ranging from tens of thousands of dollars to kickbacks. multi-million dollar wine. »
This is how more than a billion dollars which are requested as financial compensation by the plaintiffsthe latter also arguing that the unregistered titles promoted by the defendants were those of a ” fraudulent scheme designed to take advantage of investors worldwide “.
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Charges to check in court
Bitboy, a controversial figure in the crypto sphere directly targeted by the complaint, defended himself to the accusations on his Twitter accountstating that he had ” never had contact with anyone from FTX ” and ” the lawyers in this case couldn’t be dumber “. He also assures that there will be a “counter-attack”.
Countersuit coming. The lawyers on this case can’t possibly be more stupid. I’ve never had contact with anyone at FTX and never even had a reflink.
Show me you are dumb without telling me you are dumb.
I’m going to roast these Low IQ plebs and their lawyers https://t.co/1y2ct85vFq
—Ben Armstrong (@Bitboy_Crypto) March 16, 2023
The complaint further explains that the influencers have failed to comply with regulations imposed by the Securities and Exchange Commission since 2017, which stipulate that anyone promoting an unregistered security can be prosecuted, all the more so if it hides any compensation received in this regard.
Finally, the document specifies that the individuals targeted by the complaint removed content that could harm them given the situation FTX finds itself in today. However, most of them, who admitted their mistake, publicly apologized for advertising the cryptocurrency exchange.
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