Celebrities including NFL star Tom Brady and comedian Larry David have been named in a class-action lawsuit against cryptocurrency exchange FTX, accusing them of being culpable for promoting the failed firm.
FTX, one of the world’s biggest cryptocurrency exchanges, went bankrupt last week– a staggering reversal of fortune for a firm once valued at $32bn.
The Bahamas-based company and its founder, Sam Bankman-Fried, are under investigation by state and federal authorities for allegedly investing depositors’ funds in ventures without their approval.
Before it went under, FTX was known to use high-profile figures to promote its products.
It also had the naming rights to a Formula One racing team, as well as a sports arena in Miami.
Its adverts featured Seinfeld creator David, as well as Brady, the star quarterback of the Tampa Bay Buccaneers, basketball players Shaquille O’Neal and Stephen Curry, and tennis star Naomi Osaka.
The lawsuit, filed late on Tuesday, alleged these stars brought instant credibility to the platform, and are therefore just as culpable as Mr Bankman-Fried.
It is not the first time a celebrity has fallen foul of cryptocurrency promotion. In October, Kim Kardashian agreed to pay $1.26m (£1.12m) to settle charges over a post on her Instagram.
The reality TV star failed to disclose she was paid $250,000 (£220,000) for promoting a cryptocurrency asset on her feed.
“Part of the scheme employed by the FTX Entities involved utilising some of the biggest names in sports and entertainment – like these defendants – to raise funds and drive American consumers to invest … pouring billions of dollars into the deceptive FTX platform to keep the whole scheme afloat,” the lawsuit said.
Class-action lawyer Adam Moskowitz filed the lawsuit in the southern district of Florida.
The crisis has raised further questions about the regulation of cryptocurrencies and other digital assets.
The US House of Representatives Financial Services Committee said it expects to hear from Mr Bankman-Fried, who now faces potential civil and criminal charges.
“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” committee chairperson Maxine Waters said.
Singapore’s finance minister and deputy prime minister said the collapse of the FTX exchange has “very serious allegations that amount to potential fraud”.
Lawrence Wong said recent developments in the crypto market reinforced the city-state’s position that they were “on the right track” in focusing on digital assets innovation, but also taking a strong stance against crypto speculation and trading by retail investors.
Hollywood celebrities are among thousands of people to have been evacuated from their homes as fires rip through areas of Los Angeles.
Sky News’ US correspondent Martha Kelner reported that Tom Hanks, Ben Affleck and Reese Witherspoon were all evacuated on Tuesday as wildfires continued to spread in the Pacific Palisades suburb of LA.
The area, which is home to billionaires as well as Hollywood A-listers, is located between Santa Monica and Malibu.
Other celebrities who have fled their homes include the award-winning actor James Woods, who said last night he had been safely evacuated from his home in Pacific Palisades.
But he added in a post on X: “I do not know at this moment if our home is still standing.”
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Actor Mark Hamill, best known for playing Luke Skywalker in the Star Wars films, also posted on social media last night saying he evacuated his home in Malibu and his family were “fleeing for our lives”.
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This Is Us actress Mandy Moore was also forced to leave her home due to the fires.
She said in two Instagram stories she had fled the Eaton fire, which is raging near Altadena, with her children, cats and dog. They have found temporary refuge with friends.
The actress said: “Trying to shield the kids from the immense sadness and worry I feel.
“Praying for everyone in our beautiful city. So gutted for the destruction and loss. Don’t know if our place made it.”
According to Velvet Ropes, which maps celebrity properties, Tom Hanks and Rita Wilson, Matt Damon, Steven Spielberg, Hilary Swank and Sally Field all have homes close to where fires are raging.
Dr Dre, Adam Brody and Leighton Meester, Tyra Banks, Martin Short, Anna Faris, Milo Ventimiglia, Linda Cardellini, Mary McDonnell, Adam Sandler, Miles Teller, and Jennifer Love Hewitt are also said to have houses in affected areas.
In neighbouring Malibu, which was also affected by fires in December, stars including Beyonce and Jay-Z, Kim Kardashian, Lady Gaga and Billie Eilish are said to be among the celebrity residents.
The Palisades blaze has already burnt through more than 11,000 acres of land while the Eaton one has caused the death of two people, Los Angeles County fire chief Anthony Marrone said on Wednesday.
The two other fires are known as Woodley and Hurst, after the main areas affected.
All four blazes are still growing, Mr Marrone said.
A reality TV personality known for appearing on shows like The Hills and Made In Chelsea has told Sky News her family have lost their homes in the California wildfires.
Stephanie Pratt, a model and the sister of fellow reality TV celebrity Spencer Pratt, lives in the Pacific Palisades in Los Angeles, where more than 30,000 people have fled their homes due to the fast-moving blaze.
Los Angeles fire chief Anthony Marrone said on Wednesday that the Palisades fire is still growing and that “well over 5,000 acres” have been burnt.
At least two people have been killed so far, with around 1,000 buildings destroyed.
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House surrounded by flames during wildfire
California governor Gavin Newsom earlier declared a state of emergency over the four wildfires in the south of the state.
Speaking to Sky News from London, an emotional Ms Pratt said: “It’s just so crazy, I had no idea what was happening.
“I talked to my dad yesterday and he said ‘The Palisades is burning’. He said that he was at my brother’s house on Chautauqua [Boulevard] and they were just watching the flames come.
“The firefighters came and said you got to leave.”
‘I don’t know if my house is there’
Ms Pratt said her parents and brother Spencer, who like her starred in the reality series The Hills, were safely evacuated from the area.
However, the 38-year-old added that “all of the phones are disconnected” and that she doesn’t know what had happened to her home.
“I talked to my neighbour last night and she told me that [Palisades Charter High School] had burnt down, and that’s directly behind me, and so had Gelson’s Supermarket which is adjacent,” she said.
“I just can’t reach anyone to see if my house is okay. I just Googled it and it said that it’s destroyed and terrible… I don’t know if my house is there.”
When she asked her dad about Spencer, 41, who is married to 38-year-old Heidi Montag – another co-star of The Hills – Ms Pratt said he told her “I’ve never seen him like this”.
“I’m assuming he’s just completely catatonic,” she added. “We don’t care about the material things or anything like that, but this was their family home.
“This is where they raised their two little kids.”
The Palisades fire is one of five blazes currently burning in southern California– evacuation orders were in place on Tuesday in Altadena after another fire, called the Eaton fire, started near a nature preserve.
A third blaze, called the Hurst fire, also ripped through Sylmar in the north of the city.
And according to the state department Cal Fire, two more blazes – the Woodley fire in Los Angeles and Tyler fire in Riverside – broke out on Wednesday.
Two School Of Rock co-stars, who met at the age of 10, have got married.
Caitlin Hale and Angelo Massagli, who played Marta and Frankie respectively in the 2003 classic alongside Jack Black, tied the knot in New York on Saturday.
The couple brought some of the original cast of the film, which centres on a pretend substitute teacher turning a group of musically gifted school children into a rock band, together to celebrate their nuptials.
Posting on Instagram, Hale, 33, shared various images of the day, including a photobooth picture with a handful of their former cast mates.
The former actress, who now works as a sonographer, wrote under the post: “Special thank you to everyone who contributed to an unforgettable day!”
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Rivkah Reyes, who played bass player Katie in the film, also posted about the wedding, sharing a video on TikTok.
The clip, set to Stevie Nicks’s Edge Of Seventeen, included cameos from Brian Falduto, who played Billy, Joey Gaydos Jr, who played Zack, and Aleisha Allen, who played Alicia, among others.
The use of the song was a nod to one of the scenes from the film where Black and Joan Cusack, who plays headteacher Rosalie Mullins, sing the song in a bar.
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“Celebrating the marriage of Caitlin & Angelo with my forever fam #schoolofrock #wedding,” Reyes wrote alongside the video, which showed them all dancing together.
After appearing together in the film the only contact Hale and Massagli had was through a WhatsApp chat set up with the entire cast, according to The New York Times.
The pair then both left show business and coincidentally reconnected while studying in schools in Florida.
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Massagli, 32, who now works as a lawyer for TikTok, according to The Times, told the paper the familiarity they both had due to working together when they were younger “cut through some of those early relationship hurdles”.