7 lawsuits have been filed against the former head of FTX after the collapse of the exchange

Shaquille O’Neal and other celebrities have become co-defendants in class action lawsuits from former customers of the bankrupt crypto platform

Seven class action lawsuits have already been filed against the former head of FTX Sam Bankman-Fried, reports Cointelegraph. Since the collapse of the exchange, their number is growing, and there are likely to be more, the publication notes. These lawsuits are not related to multiple federal investigations, but are coming from former customers of the crypto platform after it filed for bankruptcy on November 11.

A class action lawsuit from Gregg Podalski and four other former FTX customers was filed Dec. 7. The document accuses the Golden State Warriors, Bankman-Fried, Shaquille O’Neal, Kevin O’Leary and other celebrities, as well as FTX executives, of defrauding “unsophisticated investors” into buying unregistered securities, causing billions of dollars in losses for customers. The plaintiffs insist that the case be tried by a jury.

On Dec. 5, FTX customer Michael Elliott Jessup filed a class action lawsuit against Bankman-Fried, Caroline Ellison and other FTX executives, accusing them of fraud and unjust enrichment. Jessup is also pushing for a jury trial.

On Dec. 2, former FTX customer Russell Hawkins filed a class action lawsuit on behalf of all those who held funds on the exchange. Hawkins alleges that FTX customers were misled by unfair and deceptive practices. The defendants include not only FTX executives, but also accounting firms Armanino and Prager Metis, who issued certified statements about FTX’s financial condition that showed it was viable and safe to invest in cryptocurrencies on its platform.

On Nov. 23, FTX customer Stephen Pierce filed another class action lawsuit. Pierce called Bankman-Fried “one of the greatest fraudsters in history” and accused him and his entourage of using customer assets to “fund their own investments and various personal scams.” The plaintiff demanded a jury trial.

On Nov. 21, FTX customer Sunil Kavuri filed a class action lawsuit that lists as defendants Bankman-Fried, as well as celebrities and public figures who supported or promoted FTX, allegedly without disclosing their payment or share in the company. Cavoury alleges that FTX promoted unregistered products that were fraudulently represented as securities in an attempt to attract customers and generate interest.

On Nov. 20, Hong Kong resident and FTX customer Elliot Lam became a plaintiff in a class action lawsuit alleging that Bankman-Fried, Ellison and the Golden State Warriors basketball club violated California false advertising and unfair competition laws and committed fraud and collusion.

On November 15, Edwin Harrison filed a class action lawsuit that also includes numerous actors and public figures who are believed to have supported or participated in FTX marketing campaigns. Harrison also accuses FTX of deceptive and dishonest business practices and of engaging in a “fraudulent scheme” that intentionally took advantage of “unsophisticated investors.”

In turn, Bankman-Fried hired Mark S. Cohen of Cohen & Gresser (C&G) as his attorney, and Allison went to the law firm of Wilmer Cutler, Pickering Hale & Dorr to represent her.

Bankman-Fried’s parents, Stanford University law professors Joseph Bankman and Barbara Fried, were also affected by the FTX scandal. Bankman-Fried’s father canceled a course he was scheduled to teach this winter after criticism sparked by news of a $16.4 million acquisition of FTX-related real estate in the Bahamas. The mother of the former cryptocurrency exchange head said she would not teach courses at Stanford due to a “long-planned retirement.”

In late November, it was revealed that Bankman-Fried’s parents have a beachfront home in Old Fort Bay, a gated community in the Bahamas that once housed a British colonial fort built in the 1700s to protect against pirates.