TAMPA, Fla. (WFLA) — The third largest exchange platform in the virtual coin market has collapsed into bankruptcy. FTX, owned by Sam Bankman-Fried and backed by celebrities, is facing scrutiny and lawsuits after its fall.

Days later after FTX filed for bankruptcy, a class-action lawsuit was filed against the company, Bankman-Fried, and a variety of celebrity endorsers and supporters alleging that they misled FTX customers and cost billions of dollars in losses.

The lawsuit was filed in a Miami court, and names Bankman-Fried and multiple athletes and celebrities. FTX filed for Chapter 11 bankruptcy on Nov. 11. The company released a statement on the move via their official Twitter account. Co-founder Bankman-Fried also resigned from his position as CEO.

The named defendant celebrities and athletes were all listed as “FTX brand ambassadors” and included in the lawsuit for “misrepresentations and omissions regarding the Deceptive FTX Platform” and to “hold Defendants responsible for the many billions of dollars in damages they caused” to their customers.

The lawsuit seeks to “force Defendants to make them whole,” due to the large financial impact. A limited list of named defendants includes:

  • Sam Bankman-Fried, founder and former CEO of FTX and former billionaire
  • Tom Brady, NFL quarterback for the Tampa Bay Buccaneers, and a brand ambassador for FTX
  • Gisele Bundchen, Brady’s ex-wife and one of the world’s highest-paid models and a brand ambassador for FTX
  • Kevin O’Leary, “Mr. Wonderful,” a businessman, television personality on Shark Tank, and brand ambassador for FTX
  • Udonis Haslem, of the NBA’s Miami Heat, and brand ambassador of FTX
  • David Ortiz, former player for MLB team The Red Sox, and a brand ambassador for FTX
  • Shaquille O’Neal, former professional NBA basketball star, sports analyst, entrepreneur, and FTX brand ambassador
  • William Trevor Lawrence, quarterback for NFL team the Jacksonville Jaguars and a brand ambassador for FTX
  • Stephen Curry, basketball player for the Golden State Warriors
  • The Golden State Warriors, LLC, the NBA team
  • Shohei Ohtani, of MLB team the Los Angeles Angels of the MLB and a brand ambassador for FTX
  • Naomi Osaka, a professional tennis player and brand ambassador for FTX
  • Larry David, an American comedian, writer, actor, television producer, and FTX brand ambassador

Bankman-Fried’s net worth was, before the FTX collapse, a reported $26 billion, according to the class-action lawsuit documents. The suit says reporting by CoinDesk showed Bankman-Fried’s two companies, FTX and Alameda Research, were operated as two separate corporations, but that Alameda’s “balance sheet…was full of FTX–specifically, the FTT token issued by the [FTX] exchange.”

CoinDesk’s report had questioned the stability of “Bankman-Fried’s empire.” The class-action lawsuit alleges that when “FTX filed for bankruptcy protection, customers had entrusted billions of dollars to it, with estimates ranging from $10-to-$50 billion.”

CNBC reported that FTX has more than 100,000 creditors, which the company noted in its Nov. 11 bankruptcy filing. According to CNBC’s report, FTX went bankrupt, after reporting a $32 billion valuation, in “days” as its “liquidity dried up” and its customers wanted to withdraw their funds.

New FTX CEO John Ray III, known for overseeing Enron’s bankruptcy proceedings in 2001, said the corporate controls of FTX were “a complete failure.” Speaking with NBC News, Ray said “substantial portion” of the FTX assets may be “missing or stolen.”

The U.S. Treasury Department is now in the process of probing crypto exchanges to assess potential risk of collapse, and congressional committees are “readying” for review, announced by the U.S. House of Representatives on Wednesday, according to reports by the Washington Post.

As federal agencies and lawmakers weigh responses, it’s worth noting that those elected to legislate and regulate may also end up tied in cryptocurrency tangles.

According to Open Secrets, a non-profit which tracks money in U.S. politics, Bankman-Fried donated about $36 million to Democrats and $155,000 to Republicans. He’s listed as their No. 6 top individual donor in the U.S. The data shows the only donor to Democrats in the 2022 election cycle who gave more to political action committees was George Soros, who donated $126.75 million.

FTX, as a company, also donated more than $70 million in the 2022 election cycle, according to the organization’s data.

“Lawmakers introduced 35 bills related to cryptocurrency, blockchain technology and a central bank digital currency in 2021,” Open Secrets reported in June. “Congress has introduced a record 50 bills in 2022 that would further shape the crypto and blockchain landscape.”