Several influencers with a presence on social networks and the YouTube platform are being sued by investors who accuse them of improperly promoting FTX without reporting their compensation. The plaintiffs are seeking more than $1 billion in financial compensation and claim that the unregistered securities promoted by the defendants were part of a “fraudulent scheme designed to take advantage of investors around the world. “
Influencers in the sights of aggrieved investors
On Wednesday, several plaintiffs filed a lawsuit against various influencers on social networks and the YouTube platform, accusing them of improperly promoting FTX without reporting their relative compensation.
The influencers targeted by the complaint all have at least several hundred thousand subscribers on their respective networks, and some even have several million. Among them, we find Graham Stephan, Kevin Paffrath (better known under the pseudonym Meet Kevin), Andrei Jikh, Jeremy Lefevbre or Ben Armstrong (who uses the pseudonym Bitboy).
According to the document filed by the plaintiffs, these influencers have largely helped FTX to reach the role of a leading cryptocurrency exchange:
” The rise of the Internet and social media has given rise to a new multi-billion dollar cottage industry, that of “influencers.” In fact, FTX could not have reached such heights without the massive impact of these influencers, who promoted the deceptive FTX platform in exchange for undisclosed payments ranging from tens of thousands of dollars to multi-million dollar bribes. “
Thus, more than $1 billion in financial compensation is sought by the plaintiffs, who also allege that the unregistered securities promoted by the defendants were those of a “fraudulent scheme designed to take advantage of investors around the world. “
Accusations to be verified in court
Bitboy, a controversial figure in the crypto sphere directly targeted by the complaint, defended himself from the accusations on his Twitter account, stating that he had “never had contact with anyone from FTX” and that “the lawyers in this case couldn’t be more stupid.” He further assures that there will be a “counterattack”.
Countersuit coming. The lawyers on this case can’t possibly be more stupid. I’ve never had contact with anyone at FTX and never even had a reflink.
Show me you are dumb without telling me you are dumb.
I’m going to roast these Low IQ plebs and their lawyers https://t.co/1y2ct85vFq
– Ben Armstrong (@Bitboy_Crypto) March 16, 2023
The complaint further explains that influencers have not complied with regulations imposed by the Securities and Exchange Commission since 2017, which state that anyone promoting an unregistered security can be prosecuted, even more so if they conceal possible compensation received for doing so.
Finally, the document states that the individuals involved in the complaint have removed content that could be detrimental to them given the situation FTX is in today. However, most of them, who acknowledged their mistake, have publicly apologized for advertising the cryptocurrency exchange platform.
