Jailed FTX Founder Sam Bankman-Fried Turns on Celebrity Endorsers

Bankman-Fried agrees to cooperate with class-action lawsuit against stars who promoted his failed crypto exchange

Apr. 12, 2026 at 4:27am

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A photorealistic studio still-life image showing a broken piggy bank made of polished brass and glass, resting on a clean, monochromatic background. The dramatic lighting and shattered form symbolize the collapse of the FTX crypto exchange.The shattered remnants of a once-promising crypto empire, a stark reminder of the high price paid by investors who trusted celebrity endorsements.Today in Miami

Fallen cryptocurrency entrepreneur Sam Bankman-Fried, currently serving a 25-year prison sentence for fraud, has agreed to cooperate with a class-action lawsuit against celebrities who promoted his FTX crypto exchange. The lawsuit targets big names like Tom Brady, Gisele Bundchen, Shaquille O'Neal, and Larry David, alleging they are responsible for around $11 billion in losses to American consumers.

Why it matters

The collapse of FTX in late 2022 was one of the biggest scandals in crypto history, wiping out billions in investor funds. This lawsuit aims to hold the celebrity endorsers accountable for their role in promoting Bankman-Fried's alleged Ponzi scheme to unsuspecting consumers.

The details

As part of the agreement, Bankman-Fried will provide documents, affidavits, and other information to aid the class-action lawsuit against the celebrities. In return, the investors will drop their civil liability claims against the jailed FTX founder. The lawsuit claims the celebrities 'controlled, promoted, assisted in, and actively participated in' FTX's fraudulent operations.

  • In November 2023, Bankman-Fried was convicted by a federal jury on seven counts of fraud, embezzlement and criminal conspiracy.
  • In April 2026, Bankman-Fried was sentenced to 25 years in prison and ordered to pay $11 billion in forfeiture.

The players

Sam Bankman-Fried

The 32-year-old founder of the now-collapsed FTX crypto exchange, who is currently serving a 25-year prison sentence for fraud.

Tom Brady

NFL quarterback who appeared in FTX commercials and was an ambassador for the platform.

Gisele Bundchen

Supermodel and ex-wife of Tom Brady, who also appeared in FTX commercials as an ambassador.

Larry David

Actor and comedian who starred in a Super Bowl ad rejecting FTX.

Shaquille O'Neal

NBA legend who appeared in an FTX commercial promoting the platform.

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What they’re saying

“It haunts me every day. I made a series of bad decisions.”

— Sam Bankman-Fried

“Mistakes were made, but never a word of remorse for the commission of a terrible crime.”

— Judge Lewis Kaplan, US District Court Judge

What’s next

The class-action lawsuit against the celebrity endorsers is expected to move forward in the US District Court's Southern District of Florida, with Bankman-Fried's cooperation potentially aiding the plaintiffs' case.

The takeaway

This case highlights the risks of celebrity endorsements, especially in the unregulated world of cryptocurrency. It also underscores the need for greater accountability when high-profile figures promote financial products to unsuspecting consumers.