Jaguars quarterback Trevor Lawrence reaches resolution in FTX endorsement lawsuit
Jacksonville Jaguars quarterback Trevor Lawrence, who previously endorsed the now-defunct FTX, is ready to pay settlements to clear his name.
Lawrence is among the list of famous names who promoted FTX and is currently facing charges related to the fall of the exchange.
Lawrence, high-profile figures embroiled in FTX scandal
Lawrence is set to settle allegations surrounding his endorsement of the now-defunct FTX cryptocurrency exchange. This settlement, which also includes YouTube influencers Kevin Paffrath and Tom Nash, forms part of a legal battle involving sports figures accused of participating in FTX’s fall, allegedly orchestrated by founder Sam Bankman-Fried.
Bankman-Fried, who has pleaded not guilty, is expected to face trial next month in Manhattan on criminal charges. Other high-profile individuals who endorsed FTX and are now facing lawsuits include Shaquille O’Neal, Tom Brady, and Steph Curry.
Court documents indicate that Bankman-Fried heavily invested in endorsements to raise FTX’s profile, securing the support of celebrity athletes, Major League Baseball, NBA teams, and Formula 1 racing. He also reportedly secured the naming rights to the Miami Heat’s arena and ran a Super Bowl commercial featuring Larry David.
The lawyers leading the $1 billion case stated they are currently in confidential settlement discussions with other defendants and anticipate additional settlements with parties linked to FTX. They have also expressed their desire to work with lawyers overseeing FTX’s bankruptcy case to facilitate mediation to settle claims.
Endorsements and allegations in the FTX cryptocurrency saga
Previously with the Clemson Tigers and the first overall pick in the 2021 NFL draft, Lawrence became an endorser for FTX in the same year. He also received a significant signing bonus in cryptocurrency.
Paffrath, a California-based real estate broker and entrepreneur, promoted FTX on his YouTube channel and received payment each time he mentioned the platform.
FTX collapsed in November 2022 after investigations revealed that Bankman-Fried had used over $8 billion in customer deposits as trading capital for his hedge fund, Alameda Research, which incurred significant losses through high-risk trades and questionable real estate investments.
