A new class-action lawsuit alleges crypto influencers, including Ben Armstrong, aka BitBoy, promoted FTX without disclosing compensation.

The lawsuit also alleges the defendants replaced YouTube clips promoting former FTX CEO Sam Bankman-Fried with videos apologizing for their endorsements of both the exchange and Bankman-Fried.

Crypto Influencers Hide Behind Language, Says Lawyer

Adam Moskowitz will represent U.S. and non-U.S. plaintiffs in a class-action suit against Armstrong, Erika Kullbergm, and Kevin Paffrath.

The lawsuit adds to a growing list of cases against celebrities who promoted FTX. Some influencers earned money from trades on FTX by customers they referred.

Crypto podcaster Anthony Pompliano promoted the exchange in 2022, while Shark Tank investor Kevin O’Leary reportedly would have received $15 million for promoting the now-defunct exchange.

In the U.S., the Securities and Exchange Commission has well-worn rules that compel securities promoters to disclose conflicts of interest. They must reveal the nature, amount, and source of their remuneration.

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Author: David Thomas

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