NFL star Trevor Lawrence and 2 YouTube influencers settled the FTX endorsement class-action: Report

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NFL star Trevor Lawrence and 2 YouTube influencers settled the FTX endorsement class-action: Report

FTX garnered significant attention through celebrity endorsements, including naming rights to the Miami Heat’s arena and a Super Bowl commercial featuring Larry David. Lawyers representing the plaintiffs in the $1 billion case against endorsers told Bloomberg that they are “engaged in ongoing confidential, settlement discussions” with other defendants, and there is a “likelihood that other FTX settlements will be reached.”

The lawsuit alleges that FTX’s celebrity endorsements contributed to the platform’s rise but asserts that the endorsers failed to disclose details of their deals and compensation to investors. At the time of filing, the lawsuit stated:

“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments and compensation, nor conduct adequate (if any) due diligence.”

Lawrence, the first overall NFL draft pick in 2021, signed an endorsement deal with FTX, receiving a $500,000 payment in cryptocurrency. Kevin Paffrath, known as a “landlord influencer,” promoted FTX on his YouTube channel, “Meet Kevin,” for which he was allegedly paid $2,500 for each mention of the platform.

Lawyers for the endorsers argue that the advertisements didn’t encourage users to actually deposit money into FTX accounts. Moreover, the lawyers maintain that the endorsers had no hand in the alleged “FTX’s misappropriation and mismanagement.”

After FTX collapsed in November 2022, Paffrath and Nash removed their FTX endorsements from their YouTube channels and issued apologies.


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Vitalik Buterin stirs market uncertainty with $1M Ethereum transfer to Coinbase

According to on-chain data, a wallet associated with Ethereum (ETH) co-founder Vitalik Buterin sent 600 Ether worth roughly $1 million to Coinbase earlier today.

The motive behind the transaction remains speculative as of press time. Usually, transfers to exchange are translated to mean an intention to sell. With Ethereum’s price recently struggling, Buterin’s transaction could further exert more selling pressure on the digital asset.

Meanwhile, on-chain sleuth Lookonchain reported that Vitalik.eth wallet repaid 251,000 RAI on DeFi platform Maker and withdrew 1,000 ETH (around $1.67 million) on Aug. 20.

The wallet known as “vitalik.eth” was created seven years ago and contained 3,993 ETH, worth $6.5 million as of press time. CryptoSlate, using the Arkham Intelligence dashboard, confirmed that the wallet belonged to the Ethereum co-founder. Other digital assets in the wallet include $84,000 worth of USD Coin (USDC) and $58,000 worth of Wrapped Ethereum (WETH).

This is not the first time Buterin would transfer assets to a crypto exchange. Earlier in the year, the Ethereum co-founder sent 200 ETH to Kraken in March. Around the same period, Buterin dumped several unsolicited altcoins (sh*tcoins) for 439.25 ETH.

ETH price struggling

Buterin’s transaction is coming on the heels of last Thursday’s crypto market flash crash. Last week, ETH’s price fell below $1700 for the first time since June and continued to trade under the mark as of press time.

According to CryptoSlate’s data, ETH traded at $1667 at the time of writing after a slight decline of 0.18% in the last 24 hours.

However, data from blockchain analytical firm Glassnode shows that Ethereum holders are jealously guarding their holdings as they rapidly send their assets off crypto exchanges. According to the data aggregator, the amount of ETH held on exchanges is 14.88 million, a level not recorded since 2018.

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