“The reality is that people have to put on their big boy pants and realize that if they make a decision based on something they hear online, it’s their responsibility,” he says.
In the comments section, opinions were divided. Some commentators praised Paffrath for his transparency, while others criticized him. “Content creators should also be more careful who they endorse,” one wrote. “Especially if it’s a paid sponsorship.”
“Yes,” Paffrath responded 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 firm Creators Agency, which had many clients promoting FTX, had “promoted, assisted, and/or participated” in the sale. of “unregistered securities” by the crypto company. The presentation cites a high-interest account in which customers can store their cryptocurrencies.
The lead plaintiff in the case is Edwin Garrison, an Oklahoman who also runs 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 the Moskowitz Law Firm, previously told BuzzFeed News that his client was trying to save money for her granddaughter and lost her entire investment.
In the case against the YouTubers, Garrison was joined by FTX investors from around the world, including the UK and Australia. Adam Moskowitz, the attorney representing the plaintiffs, told BuzzFeed News: “Influencers get paid, just like all other promoters, and therefore must be held accountable. They are paid so much because today they play an important role with social networks, in making financial decisions.
In the aftermath of FTX’s collapse, several of the YouTubers named in the lawsuit posted videos apologizing for their role in promoting the company.
“Used to be sponsored by FTX. I think that’s a shame. And it’s a scar. And it sucks. If I could go back, I would trade it, because people got hurt by it.” Paffrath saying. Stephan said in a november video“At the most basic level, I made the mistake of thinking that the image of Sam Bankman-Fried 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 channel, said news outlet Decrypt that FTX never paid him and intends to counter-sue.
Paffrath admits in his lawsuit video that although he promoted FTX, he had no funds on the exchange and lost no money. However, he points out that he had lost $420,000 in another crypto investment.
“I have always believed that cryptocurrencies are speculative and unregulated,” he says, “and if someone chooses to participate in cryptocurrency, that is up to them.” Paffrath has removed videos of him promoting FTX.
