YouTubers are sued for promoting FTX

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“The reality is that people have to put on their big boy pants and realize that if you’re making a decision because of something you heard online, that’s your responsibility,” he says.

In the comments section, opinions were divided. Some commentators praised Paffrath for his transparency, while others took him to task. “Content creators should also be more careful who they approve of,” one wrote. “Especially if it’s a paid listing.”

“Yeah,” Paffrath replied in a comment. “Everyone learns.”

The lawsuit, filed Wednesday in the Southern District of Florida, alleges that a group of eight YouTubers and influencer management company Creators Agency, which had numerous clients who hyped FTX, “promoted, aided and/or participated” in the sale. of “unregistered securities” by the crypto company. The filing cites a high-interest account in which clients could store their crypto holdings.

The lead plaintiff in the case is Edwin Garrison, an Oklahoma resident who is also pursuing a separate class action lawsuit against celebrities such as Tom Brady and Gisele Bündchen for their roles in FTX advertising. Garrison’s attorney, Joseph Kaye of Moskowitz Law Firm, previously told BuzzFeed News that his client was trying to save money for his granddaughter and lost his entire investment.

In the case against the YouTubers, Garrison has been joined by FTX investors from around the world, including the UK and Australia. Adam Moskowitz, the attorney representing the plaintiffs, told BuzzFeed News, “Influencers are paid, like all other promoters, and therefore must be held accountable. They are paid so much because they play a big role today with social media, in making financial decisions.

In the aftermath of FTX’s collapse, several of the YouTubers named in the lawsuit posted apology videos for their role in promoting the company.

“I was sponsored by FTX. I think it’s a shame. And it’s a scar. And it sucks. If I could go back I would change it, because people got hurt because of it” , said Paffrath. Stephan said in a November video, “At the most basic level, I made the mistake of thinking that Sam Bankman-Fried’s image had something to do with his credibility.”

None of the influencers named in the lawsuit responded to BuzzFeed News’ requests for comment. However, Anderson, who runs the BitBoy Crypto chain, told news outlet Decrypt that he never got paid by FTX and intended to fight back.

Paffrath admits in his lawsuit video that even though he had promoted FTX, he had no funds in the exchange and did not lose any money. However, he notes that he had lost $420,000 in another crypto investment.

“I’ve always believed that crypto is speculative and loosely regulated,” he says, “and if anyone chooses to engage in crypto, that’s up to them.” Paffrath has deleted his videos promoting FTX.

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