Tr?id=566623520170033&ev=PageView&noscript=1

BlockFi Files for Bankruptcy as FTX and Star Endorsers Named in Lawsuit

Posted on December 1st, 2022 at 3:13 PM
BlockFi Files for Bankruptcy as FTX and Star Endorsers Named in Lawsuit

From the Desk of Jim Eccleston at Eccleston Law.

BlockFi, a major cryptocurrency lender, has filed for bankruptcy.
BlockFi had paused client withdrawals due to uncertainties with FTX, as the two are closely tied together. FTX provided BlockFi with a $400 million revolving credit line in July, which was accompanied by an option to purchase the company. The meltdown and subsequent bankruptcy of FTX has had a widespread impact across the crypto industry. For example, FTX CEO Sam Bankman-Fried was set to purchase Voyager Digital, which had filed for bankruptcy, for $1.4 billion. However, Voyager Digital now is struggling to find a new buyer for the company’s assets.

While FTX and former CEO Sam Bankman-Fried recently were sued by an investor for allegedly targeting “unsophisticated investors”, several celebrity endorsers have additionally been named in the lawsuit, including Tom Brady, Stephen Curry, and Shaquille O’Neal. According to the complaint, FTX violated securities laws by enrolling investors in yield-bearing FTX crypto accounts, which allegedly constitute unregistered securities. Garrison’s complaint further alleges that FTX utilized celebrities to promote the company’s unregistered securities and attract investors into a Ponzi scheme. Brady and his then-wife Gisele Bundchen, who also was named in the suit, filmed a commercial named “FTX. You In?” which portrayed the couple encouraging acquaintances to join the platform, according to the complaint. However, FTX’s bankruptcy will impact the lawsuit.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, ftx

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

1791220249 Law
October 5, 2026
House Passes Bill to Restore Tax Deduction for Financial Fraud Victims

Victims of financial fraud may soon receive additional tax relief under legislation that overwhelmingly passed in the House of Representatives.

1790960250 Law
October 2, 2026
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co.

1790867615 Law
October 1, 2026
Prosecutors Target Multimillion-Dollar Investment Schemes Involving Promissory Notes

Federal prosecutors recently pursued two investment fraud cases involving promissory notes that caused combined investor losses exceeding $25 million.