The lawsuit stemmed from FTX's catastrophic collapse in November 2022, which wiped out billions of dollars in customer funds and triggered investigations worldwide. The plaintiffs accused the stars of being paid millions of dollars to endorse FTX without disclosing their financial incentives, a violation of federal and state advertising laws.
In an order filed Wednesday, U.S. District Judge K. Michael Moore ruled that the plaintiffs, a group of FTX investors, failed to demonstrate that the celebrities had sufficient knowledge of FTX and CEO Sam Bankman-Fried's misconduct to be held liable for promoting the exchange.