Celebrities like Tom Brady Steph Curry And Larry David had been named as defendants In a category motion lawsuit and the position In selling FTX Joining us now to debate this managing Partner at Moskowitz Law Firm Adam Moskowitz welcome Adam Good morning Good morning to you so that you filed the Lawsuit on behalf of an FTX buyer Named Edwin Garrison okay clarify what What the authorized motion is right here Why are you why are you naming a bunch Of actors and and sports activities individuals in a Lawsuit involving FTX Yeah I believe this has been good and good Morning and thanks for having me on This has been fully misunderstood By the media as a result of it's a fairly Simple problem Friday was an incredible day for All traders in FTX and in Voyager a Really nice day first within the Voyager Case the decide denied all their motions To keep and we will go full power for all Of your Discovery towards Mr Cuban the Mavericks a few of the NBA advertising and marketing reps To actually present what they knew after they Knew Bridge In FTX identify these Global ambassadors Because it's not a tough problem in 2017 The SEC got here out with a press release Warning movie star endorsers it was dated November 1st and it says in case you are Going to be a celeb endorser for
Crypto we would like you to know now if it's Found that they're securities these Interest-bearing accounts or yield Bearing accounts for FTX and Voyager if They are securities you'll be liable For selling an unlawful product you'll Be selling an unregistered safety Is Ft however ft they had been selling FTX The Exchange from what one might inform they Weren't selling from what uh you recognize And look I'm not I'm not defending them At all however they weren't selling FTX Token they had been selling The Exchange And and the ridiculous charges that these Exchanges cost Um What precisely are you recognize what what are They selling did nobody ever point out An FTX coin I believe most individuals who open Accounts at FTX had no thought there was an Ftt FTX coin that that was getting used as Collateral by Alameda so why is Larry David uh being you recognize punished right here I Mean what did he do That's all of the confusion what the SEC Said in in 2017 and 2021 if you signal Up for an FTX account you're Automatically enrolled of their yield Based earnings accounts so that you're Automatically getting curiosity as soon as a Month primarily based upon regardless of the worth is Bitcoin that account it's like a financial institution Account that Count could possibly be known as the Securities
Because it has totally different charges of Interest paying that you simply don't know Every month and the SEC stated to coinbase To block fi to Voyager to FTX previous to Them signing up we predict these are Security I'm sorry I don't know sorry we're we're getting a Little little bit of crossover so so that you had been Saying Um let me ask this so that you listed all These you listed a selected individuals in This however in fact these commercials These endorsements had bit gamers Actors different actors Etc Um they may not have been well-known why Aren't they named Oh as a result of they're not model ambassadors These these particular celebrities stated to FTX we'll comply with be your model Ambassador and so they knew in 2017 the SEC Said if these accounts the place your cash Is held not the buying and selling tokens not Trading any Bitcoin however simply the Accounts in your cash is held at FTX And will get curiosity if that's determined to Be a safety which the SEC and eight Attorney generals have already discovered you As a model ambassador could also be responsible for Promoting an unregistered safety it Was that clear and so they went forward and Took the prospect and took the billions of Dollars thousands and thousands of {dollars} in inventory and Wrote The Wave when CTF when FTX was
Trading nice and now they're gonna have To be liable for selling an Unregistered safety So each single individual that you simply listed Is particularly cited as a model Ambassador or or with these simply paid Spokespeople Was there a distinction There's 32 model ambassadors we've Named 21 of them thus far we shall be suing The remainder of them as a result of they had been put On seen by the SEC there's a threat to Do this So uh Your uh your consumer proper Edwin Garrison Uh how a lot did he lose particularly Because it looks like you're submitting for 11 billion {dollars} in Damages right Correct we've about 600 particular person Investors in Voyager and we've received Thousands of calls over the past week For these traders so we've tons of And tons of of traders for a category Action you simply need to go along with the few Class representatives and we filed now Four totally different instances in federal court docket And in state court docket as a result of in State Court we'd like a ruling subsequent week are These Securities if they're 90 of this Litigation is over How a lot did they lose the the you your Clients how a lot have they misplaced so so Far in complete Around 20 30 million {dollars}
Have their cash banked at FTX or Voyager they're not buying and selling it they Didn't make a nasty commerce it's simply Sitting there getting eight p.c Interest each week so we've about 20 Or 30 million {dollars} in traders I Think by the tip of this week we should always Have about 150 million {dollars} in Individual investor cash however the good News is that each one of those model Ambassadors have the cash to pay again The billions of {dollars} {dollars} that we Know could also be misplaced by Sam and by FTX and By Voyager in actual fact Mark Cuban went on Road reveals with the CEO of Voyager Steve Ehrlich and he was personally promising People he invested in it he did his due Diligence in it and now that we see the Bankruptcy schedules we will't discover a Single funding by Mark Cuban so what Was he saying did he take his cash out Did he by no means make an funding he's Different than the model ambassadors Because this man is personally utilizing his Team to attempt to affect individuals to purchase Voyager inventory I've by no means seen that in my 30 years of sophistication motion expertise Where any individual's truly calling Individual traders telling them you Need to purchase this inventory my daughter buys The inventory and now it's turning out Possibly to not be true in any respect So Adam uh when do you anticipate this all To be uh settled how lengthy do you assume
It'll take to undergo the court docket System In a typical case it might final 10 years But our technique is to maneuver shortly we'd Like a ruling by the state court docket subsequent Week or the next week are these Securities if that preeminent problem is Decided I might say I I might see that These forms of litigation might get Resolved in six months it doesn't have To take without end and for the chapter Lawyers to take all the cash from the Victims this might transfer expeditiously Because once more the SEC stated in 2017 if You turn out to be a model ambassador and we Find these are securities and so they had been Not registered you chances are you'll be liable Under the federal regulation and take a look at Companies like Bitcoin uh block 5 we Paid 100 million greenback high-quality Is Adam if you happen to discover a court docket that will get Anything by in six months please Let me know I might love to make use of them That's Adam Moskowitz he's a associate at Moskowitz Law Firm thanks once more Adam For for visiting us at uh first mover