Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 1 of 97
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF FLORIDA
`MIAMI DIVISION
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`CASE NO. 1:22-cv-23753-KMM
`
`EDWIN GARRISON, et al., on behalf of
`themselves and all others similarly situated,
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`Plaintiffs,
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`v.
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`SAM BANKMAN-FRIED, et al.,
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`
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`Defendants.
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`AMENDED CLASS ACTION
`COMPLAINT
`
`
`JURY DEMAND
`
`
` AMENDED CLASS ACTION COMPLAINT AND DEMAND FOR JURY TRIAL
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`Plaintiffs file this Consolidated Complaint (the only Class Action in the Country), on behalf
`
`
`
`
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`of themselves, and all other similarly situated US and non-US FTX consumers, against
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`Defendants, who all promoted, assisted in, and/or actively participated in FTX Trading LTD d/b/a
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`FTX’s (“FTX Trading”) and West Realm Shires Services Inc. d/b/a FTX US’s (“FTX US”)
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`(collectively, the “FTX Entities”), offer and sale of unregistered securities, identical FTX yield-
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`bearing accounts (“YBAs”).
`
`INTRODUCTION
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`1.
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`Everyone now agrees the FTX Disaster is the largest financial fraud in US history.
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`The former FTX CEO is in jail and the new CEO—who helped wind down Enron—concluded the
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`fraud here was worse than Enron. Billions of dollars have been stolen from investors across the
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`globe. FTX will be involved in federal bankruptcy proceedings for many years and there is no
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`guarantee that any of the victims will be able to see any recovery from those proceedings. This
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`Federal Consolidated Action may be the only avenue for any of the victims to recover any of their
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`damages. This action is specifically brought against persons and celebrities who were specifically
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`warned by the SEC back in 2017 (and in many FTC Guidelines), that if these FTX YBA’s are
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`found to be “securities,” those persons may be liable under state and federal regulations for: (1)
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`promoting an unregistered security, or (2) failing to properly disclose their payments and
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`compensation. Those specific claims have a strict liability standard with no caveat emptor defense.
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`2.
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`The question of whether the sale of every YBA is (or is not) the sale of
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`“unregistered securities” has practically been answered in the affirmative through various
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`regulatory statements, guidance, and actions issued by the Securities and Exchange Commission
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`and other regulatory entities. For example, on November 1, 2017, in the “SEC Statement Urging
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`Caution Around Celebrity Backed ICOs,”1
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`In the SEC’s Report of Investigation concerning The DAO,2 the Commission
`warned that virtual tokens or coins sold in ICOs may be securities, and those who
`offer and sell securities in the United States must comply with the federal securities
`laws. Any celebrity or other individual who promotes a virtual token or coin that is
`a security must disclose the nature, scope, and amount of compensation received in
`exchange for the promotion. A failure to disclose this information is a violation of
`the anti-touting provisions of the federal securities laws. Persons making these
`endorsements may also be liable for potential violations of the anti-fraud
`provisions of the federal securities laws, for participating in an unregistered
`offer and sale of securities, and for acting as unregistered brokers. The SEC will
`continue to focus on these types of promotions to protect investors and to ensure
`compliance with the securities laws.
`The SEC and state securities regulators over the past 5 years, have already found
`3.
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`liable numerous celebrities, cryptocurrency brokers and exchanges just like FTX for offering this
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`
`1
`https://www.sec.gov/news/public-statement/statement-potentially-unlawful-promotion-icos
`(accessed December 16, 2022).
`2 https://www.sec.gov/litigation/investreport/34-81207.pdf (accessed December 16, 2022)
`
`2
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 3 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`exact same type of interest-bearing account, finding that exchanges such as BlockFi,3 Voyager,4
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`and Celsius5 all offered these same accounts as unregistered securities.
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`4.
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`A second narrow issue that is common to the entire Proposed Class, whose focus is
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`solely objective, is whether these Defendants violated state consumer laws by failing to abide by
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`any of the FTC’s long established rules and regulations, specifically on what is required for a
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`celebrity endorsement of cryptocurrency.
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`5.
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`We all need to be clear. This is not a case where Plaintiffs made a “risky”
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`investment in stock or cryptocurrency, or that they lost money speculating on various
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`cryptocurrency projects. Plaintiffs’ claims arise simply from the purchase of and investment in a
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`YBA, a savings type of account with FTX that every customer who signed up for the FTX app
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`received by default, and which, as explained below, was guaranteed to generate returns on their
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`significant holdings in the accounts, regardless of whether those assets were held as USD, legal
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`tender or cryptocurrency, and regardless of whether any trades were made with the assets held in
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`the YBA. In other words, the YBA was portrayed to be like a bank account, something that was
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`“very safe” and “protected.” That is the narrative that Defendants pushed in promoting the offer
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`and sale of the YBAs, which are unregistered securities. For that, Defendants are liable for
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`Plaintiffs’ losses, jointly and severally and to the same extent as if they were themselves the FTX
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`Entities.
`
`
`3 https://www.sec.gov/news/press-release/2022-26 (accessed December 16, 2022).
`4
`https://coingeek.com/6-us-regulators-crackdown-on-voyager-digital-over-interest-bearing-
`accounts/ (accessed December 16, 2022).
`5
`https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved
`=2ahUKEwjvjNvg27j7AhWfRTABHfwzDe4QFnoECAsQAQ&url=https%3A%2F%2Fwww.nj.
`gov%2Foag%2Fnewsreleases21%2FCelsius-Order-
`9.17.21.pdf&usg=AOvVaw0Zd94fuhFSsOoGKM-vQ3YI (accessed December 16, 2022).
`
`3
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 4 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`6.
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`Literally overnight, Plaintiffs’ assets held in their YBAs on the Deceptive FTX
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`Platform were robbed from them as FTX imploded and former-CEO, Sam Bankman-Fried, filed a
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`Chapter 11 bankruptcy petition in Delaware on an emergency basis. This happened because, as
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`explained by the new CEO of the failed FTX Entities:
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`I have over 40 years of legal and restructuring experience. I have been the
`Chief Restructuring Officer or Chief Executive Officer in several of the largest
`corporate failures in history. I have supervised situations involving allegations of
`criminal activity and malfeasance (Enron). I have supervised situations involving
`novel financial structures (Enron and Residential Capital) and cross-border asset
`recovery and maximization (Nortel and Overseas Shipholding). Nearly every
`situation in which I have been involved has been characterized by defects of some
`sort in internal controls, regulatory compliance, human resources and systems
`integrity.
`Never in my career have I seen such a complete failure of corporate controls
`and such a complete absence of trustworthy financial information as occurred
`here. From compromised systems integrity and faulty regulatory oversight abroad,
`to the concentration of control in the hands of a very small group of inexperienced,
`unsophisticated and potentially compromised individuals, this situation is
`unprecedented.
`See In re: FTX Trading Ltd, et al., No. 22-11068 (JTD), ECF No. 24, ¶¶ 4–5 (D. Del. Nov. 17,
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`2022) (emphasis added).
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`7.
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`The Cryptocurrency National Disaster is growing by the billions almost every day.
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`More crypto companies are filing new federal bankruptcy petitions each day, all running for
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`protection from the billions of dollars of losses they directly caused to thousands of investors here
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`in Florida and across the globe. This is by far the largest securities national disaster, greatly
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`surpassing the Madoff Ponzi Scheme, and could very likely become a complex international
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`litigation disaster, similar to how the hundreds of thousands of asbestos cases swamped all courts
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`across the globe. Unless a workable, coordinated, and organized structure is established now, at
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`the very onset of these proceedings, here in Miami, which served as the epicenter for the crypto
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`4
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 5 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`fraud, the FTX victims will continue to suffer and the only people to benefit will be the
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`professionals in the bankruptcy and civil courts.
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`8.
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`The Deceptive and failed FTX Platform all emanated from here in Miami, Florida,
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`FTX’s domestic headquarters and the host of the largest and most famous International World
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`Cryptocurrency Conventions. FTX’s fraudulent scheme was designed to take advantage of
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`unsophisticated investors from across the globe, who utilize mobile apps to make their
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`investments. As a result, consumers around the globe collectively sustained billions of dollars in
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`damages. FTX organized and emanated its fraudulent plan from its worldwide headquarters
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`located here in Miami, Florida. Miami became the “hot spot” for crypto companies, hosting the
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`most investments in crypto startups as well as the annual Bitcoin Miami 2022 Global Forum.
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`Several crypto companies, including crypto exchange Blockchain.com, Ripple and FTX.US,
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`moved their headquarters to Miami. Others, including fellow exchange eToro, expanded their U.S.
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`presence with offices in Miami. FTX was already very familiar with Miami, signing a deal worth
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`more than $135 million dollars for the naming rights of the waterfront arena, where 3-time NBA
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`Champions the Miami Heat play.
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`FACTUAL BACKGROUND
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`9.
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`Undersigned Counsel have been investigated and litigating these specific issues for
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`over a year before this Court. On December 24, 2021, counsel for Plaintiffs and the proposed class
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`members brought the first (and only) putative nationwide class action complaint against the now-
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`defunct cryptocurrency trading app, Voyager, styled Mark Cassidy v. Voyager Digital Ltd., et al.,
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`Case No. 21-24441-CIV-ALTONAGA/Torres (the “Cassidy Action”), alleging that the platform
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`owned and operated by Voyager Digital Ltd. (“Voyager”) and Voyager Digital LLC (“VDL”) was
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`an unregulated and unsustainable fraud. In the Cassidy Action, plaintiffs also alleged that
`
`5
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`Defendant Ehrlich, Voyager’s CEO, teamed up with Defendants Cuban and the Dallas Mavericks
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`to promote Voyager, by making false representations and employing other means of deception. As
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`a result, the Voyager plaintiffs and Voyager class members, all sustained losses in excess of $5
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`billion.
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`10.
`
`The allegations in the Cassidy complaint—and specifically Mark Cuban’s role in
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`promoting Voyager—received national attention. See https://www.jdsupra.com/legalnews/new-
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`lawsuits-target-cryptocurrency-9604406/ (summarizing the allegations and explaining that “Mark
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`Cuban, owner of the NBA’s Dallas Mavericks, is a major stakeholder in Voyager. The complaint
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`alleges that he made comments at a press conference in which he specifically targeted
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`unsophisticated investors ‘with false and misleading promises of reaping large profits in the
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`cryptocurrency market.’”); https://www.law.com/dailybusinessreview/2021/12/29/mark-cuban-
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`linked-crypto-platform-hit-with-florida-nationwide-class-action-lawsuit-in-miami-federal-
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`court/?slreturn=20220701214901 (same, in the Daily Business Review).
`
`11.
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`After the Cassidy Complaint was filed, the following important actions took place:
`
`(a)
`
`(b)
`
`(c)
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`the United States Securities and Exchange Commission (SEC)
`began an enforcement review focused on whether Voyager’s Earn
`Program Accounts (“EPAs”) constitute unregistered securities;
`seven state Attorneys General (New Jersey, Alabama, Kentucky,
`Oklahoma, Texas, Vermont and Washington) took specific action
`finding that Voyager was violating their state laws, including issuing
`“cease and desist” letters to Voyager, finding that the EPA was an
`unregistered security, prohibiting the crypto-asset broker-dealer
`from selling any more unregistered securities (finding that Voyager
`used these EPAs to raise millions of dollars in revenue worldwide
`as of March 1, 2022; and
`on March 29, 2002, the State of New Jersey Bureau of Securities
`entered a Cease and Desist Order against Voyager, finding that the
`EPA was not exempt from registration under the law, and instead
`
`6
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`that it must be registered—and as a result, Voyager’s stock price
`tanked by 25% in a day and is down over 80% for the year.6
` On July 5, 2022, Voyager Digital Holdings, Inc. and two affiliated debtors
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`12.
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`(collectively, the “Debtors”) filed voluntary petitions for relief under chapter 11 of Title 11 of the
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`United States Code. Voyager’s bankruptcy cases (the “Voyager Bankruptcy Cases”) are jointly
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`administered under Case No. 22-10943 before the Honorable Michael E. Wiles in the United States
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`Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”).
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`13.
`
`On September 28, 2022, Voyager filed a motion in the Voyager Bankruptcy Cases
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`seeking authority to enter into an asset purchase agreement with West Realm Shires Inc., d/b/a
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`FTX US whereby Voyager will sell substantially all of its assets for a purchase price of
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`approximately $1.422 billion, which includes (i) the value of cryptocurrency on the Voyager
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`platform as of a date to be determined, which, as of September 26, 2022, is estimated to be $1.311
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`billion, plus (ii) additional consideration which is estimated to provide at least approximately $111
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`million of incremental value to the Debtors’ estates.
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`14.
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`Everyone involved in the Voyager Bankruptcy Cases thought that the FTX Entities
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`were the deus ex machina come to save the day by bailing out Voyager and paying back at least
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`some of the losses the Voyager customers sustained.
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`15.
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`Instead, as explained below, the FTX Entities imploded, their over $30 billion in
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`value evaporated almost overnight, and the FTX Entities found themselves filing their own
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`emergency Chapter 11 bankruptcy petition in Delaware. The Deceptive FTX Platform maintained
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`by the FTX Entities was truly a house of cards, a Ponzi scheme where the FTX Entities shuffled
`
`
`6
`https://seekingalpha.com/article/4498956-voyager-digital-plunged-25-percent-heres-why
`(accessed October 28, 2022); https://seekingalpha.com/article/4503716-voyager-digital-buy-dip-
`during-crypto-crash (accessed December 16, 2022).
`
`7
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`customer funds between their opaque affiliated entities, using new investor funds obtained through
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`investments in the YBAs and loans to pay interest to the old ones and to attempt to maintain the
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`appearance of liquidity.
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`16.
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`Part of the scheme employed by the FTX Entities involved utilizing some of the
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`biggest names in sports and entertainment to raise funds and drive global consumers to invest in
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`the YBAs, which were offered and sold largely from the FTX Entities’ domestic base of operations
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`here in Miami, Florida, pouring billions of dollars into the Deceptive FTX Platform to keep the
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`whole scheme afloat.
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`17.
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`Importantly, although Defendants disclosed their partnerships with the FTX
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`Entities, they have never disclosed the nature, scope, and amount of compensation they personally
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`received in exchange for the promotion of the Deceptive FTX Platform, which the SEC has
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`explained that a failure to disclose this information would be a violation of the anti-touting
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`provisions of the federal securities laws.7 Moreover, none of these Defendants performed any due
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`diligence prior to marketing these FTX products to the public.
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`18.
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`The SEC took action against boxing champ Floyd Mayweather and music producer
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`DJ Khaled after they were paid by cryptocurrency issuers to tweet promotional statements about
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`investing in Initial Coin Offerings (ICOs), ordering them both to pay disgorgement, penalties and
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`interest for promoting investments in ICOs, including one from cryptocurrency issuer Centra Tech,
`
`
`7
`https://www.ubergizmo.com/2017/11/sec-celebrities-disclose-payment-cryptocurrency-
`endorsements/#:~:text=It%20has%20issued%20a%20statement%20warning%20celebrities%20t
`hat,without%20disclosing%20that%20they%E2%80%99ve%20been%20paid%20for%20it
`(accessed December 16, 2022).
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`8
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 9 of 97
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`Inc., for a combined total of $767,500 because they failed to disclose that their promotional efforts
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`on Twitter were paid endorsements.8
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`19.
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`Other celebrities similarly accused and prosecuted for failing to disclose their paid
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`endorsements include Kim Kardashian and basketball player Paul Pierce.9 According to the
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`Federal Trade Commission, cryptocurrency scams have increased more than ten-fold year-over-
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`year with consumers losing more than $80 million since October 2020, due in large part to the use
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`of such celebrity endorsements. 10
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`20.
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`As explained more fully in this Complaint, Defendants’ misrepresentations and
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`omissions made and broadcast around the globe through the television and internet render them
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`liable to Plaintiff and class members for soliciting their purchases of the unregistered YBAs.
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`Wildes v. Bitconnect Int’l PLC, No. 20-11675 (11th Cir. Feb. 18, 2022) (holding that promoters of
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`cryptocurrency through online videos could be liable for soliciting the purchase of unregistered
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`securities through mass communication, and no “personal solicitation” was necessary for
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`solicitation to be actionable).
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`21.
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`This action seeks to hold Defendants responsible for the many billions of dollars in
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`damages they caused Plaintiffs and the Class and to force Defendants to make them whole.
`
`PARTIES
`Plaintiffs are all residents of US and/or a foreign government, and all purchased
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`22.
`
`FTX YBAs.
`
`
`8
`https://news.bloomberglaw.com/us-law-week/insights-celebrity-endorsements-and-
`cryptocurrency-a-cautionary-tale (accessed December 16, 2022).
`9
`https://blockbulletin.com/news/altcoins/kim-kardashian-among-other-celebrities-sued-for-
`promoting-cryptocurrencies/ (accessed December 16, 2022).
`10 https://florida.foolproofme.org/articles/770-celebrity-cryptocurrency-scam (accessed December
`16, 2022).
`
`9
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`Plaintiff Edwin Garrison is a citizen and resident of the State of Oklahoma. He is
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`23.
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`a natural person over the age of 21 and is otherwise sui juris. Plaintiff Garrison purchased an
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`unregistered security from FTX in the form of a YBA and funded the account with a sufficient
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`amount of crypto assets to earn interest on his holdings. Plaintiff Garrison did so after being
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`exposed to some or all of Defendants’ misrepresentations and omissions regarding the Deceptive
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`FTX Platform as detailed in this complaint, and executed trades on the Deceptive FTX Platform
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`in reliance on those misrepresentations and omissions. As a result, Plaintiff Garrison has sustained
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`damages for which Defendants are liable.
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`24.
`
`Plaintiff Gregg Podalsky is a citizen and resident of Florida. He is a natural person
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`over the age of 21 and is otherwise sui juris. Plaintiff Podalsky purchased an unregistered security
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`from FTX in the form of a YBA and funded the account with a sufficient amount of crypto assets
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`to earn interest on his holdings. Plaintiff Podalsky did so after being exposed to some or all of
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`Defendants’ misrepresentations and omissions regarding the Deceptive FTX Platform as detailed
`
`in this complaint, and/or executed trades on the Deceptive FTX Platform in reliance on those
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`misrepresentations and omissions. As a result, Plaintiff Podalsky has sustained damages for which
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`Defendants are liable.
`
`25.
`
`Plaintiff Skyler Lindeen is a citizen and resident of Florida. He is a natural person
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`over the age of 21 and is otherwise sui juris. Plaintiff Lindeen purchased an unregistered security
`
`from FTX in the form of a YBA and funded the account with a sufficient amount of crypto assets
`
`to earn interest on his holdings. Plaintiff Lindeen did so after being exposed to some or all of
`
`Defendants’ misrepresentations and omissions regarding the Deceptive FTX Platform as detailed
`
`in this complaint, and/or executed trades on the Deceptive FTX Platform in reliance on those
`
`10
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`

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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 11 of 97
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`misrepresentations and omissions. As a result, Plaintiff Lindeen has sustained damages for which
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`Defendants are liable.
`
`26.
`
`Plaintiff Alexander Chernyavsky is a citizen and resident of Florida. He is a
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`natural person over the age of 21 and is otherwise sui juris. Plaintiff Chernyavsky purchased an
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`unregistered security from FTX in the form of a YBA and funded the account with a sufficient
`
`amount of crypto assets to earn interest on his holdings. Plaintiff Chernyavsky did so after being
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`exposed to some or all of Defendants’ misrepresentations and omissions regarding the Deceptive
`
`FTX Platform as detailed in this complaint, and/or executed trades on the Deceptive FTX Platform
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`in reliance on those misrepresentations and omissions. As a result, Plaintiff Chernyavsky has
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`sustained damages for which Defendants are liable.
`
`27.
`
`Plaintiff Sunil Kavuri is a citizen and resident of the United Kingdom. He is a
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`natural person over the age of 21 and is otherwise sui juris. Plaintiff Kavuri purchased an
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`unregistered security from FTX in the form of a YBA and funded the account with a sufficient
`
`amount of crypto assets to earn interest on his holdings. Plaintiff Kavuri did so after being exposed
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`to some or all of Defendants’ misrepresentations and omissions regarding the Deceptive FTX
`
`Platform as detailed in this complaint, and/or executed trades on the Deceptive FTX Platform in
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`reliance on those misrepresentations and omissions. As a result, Plaintiff Kavuri has sustained
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`damages for which Defendants are liable.
`
`28.
`
`Plaintiff Gary Gallant is a citizen and resident of Canada. He is a natural person
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`over the age of 21 and is otherwise sui juris. Plaintiff Gallant purchased an unregistered security
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`from FTX in the form of a YBA and funded the account with a sufficient amount of crypto assets
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`to earn interest on his holdings. Plaintiff Gallant did so after being exposed to some or all of
`
`Defendants’ misrepresentations and omissions regarding the Deceptive FTX Platform as detailed
`
`11
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
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`in this complaint, and/or executed trades on the Deceptive FTX Platform in reliance on those
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`misrepresentations and omissions. As a result, Plaintiff Gallant has sustained damages for which
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`Defendants are liable.
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`29.
`
`Plaintiff David Nicol is a citizen and resident of Sydney, Australia. He is a natural
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`person over the age of 21 and is otherwise sui juris. Plaintiff Nicol purchased an unregistered
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`security from FTX in the form of a YBA and funded the account with a sufficient amount of crypto
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`assets to earn interest on his holdings. Plaintiff Nicol did so after being exposed to some or all of
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`Defendants’ misrepresentations and omissions regarding the Deceptive FTX Platform as detailed
`
`in this complaint, and/or executed trades on the Deceptive FTX Platform in reliance on those
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`misrepresentations and omissions. As a result, Plaintiff Nicol has sustained damages for which
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`Defendants are liable.
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`30.
`
`FTX Brand Ambassador Defendants are all persons and/or companies, that: (1)
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`agreed to serve as “Brand Ambassadors” for FTX, (2) all admittedly advertised and promoted the
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`sale of the FTX YBAs and (3) none of them disclosed, in any of their marketing campaigns and/or
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`advertisements, that they were paid hundreds of millions of dollars by FTX and profited from the
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`sale of FTX YBAs, in clear violation of SEC, FTC and various federal and state regulations.
`
`31.
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`Defendant Thomas Brady, NFL quarterback currently playing for the Tampa Bay
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`Buccaneers, is a brand ambassador of FTX, and is a citizen and resident of Miami-Dade County,
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`Florida.
`
`32.
`
`Defendant Gisele Bundchen, one of the world’s highest-paid models and a brand
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`ambassador for FTX, is a citizen and resident of Miami-Dade County, Florida.
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`12
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`Defendant Kevin O’Leary, “Mr. Wonderful,” a businessman, television
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`33.
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`personality appearing regularly on Shark Tank, and brand ambassador for FTX, is a citizen and
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`resident of Miami Beach, Florida.
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`34.
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`Defendant Udonis Haslem, an American professional basketball player for the
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`Miami Heat of the NBA and brand ambassador of FTX, is a citizen and resident of Miami-Dade
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`County, Florida.
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`35.
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`Defendant David Ortiz, former designated hitter and first baseman in the MLB
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`and a brand ambassador for FTX, is a citizen and resident of the State of Florida.
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`36.
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`Defendant Stephen Curry, professional basketball player for the Golden State
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`Warriors of the NBA and brand ambassador for FTX, is a citizen and resident of the State of
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`California.
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`37.
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`Defendant Golden State Warriors LLC is a professional basketball team in the
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`NBA that officially launched their partnership with FTX in 2022 with the unveiling of the FTX
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`logo on the court at the Chase Center, and is a corporation operating and existing under the laws
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`of the State of California.
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`38.
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`Defendant Shaquille O’Neal, former professional NBA basketball star, sports
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`analyst, entrepreneur, and FTX brand ambassador, is a citizen and resident of Collin County,
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`Texas.
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`39.
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`Defendant William Trevor Lawrence, the quarterback for the Jacksonville
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`Jaguars of the NFL and a brand ambassador for FTX, is a citizen and resident of the state of
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`Mississippi.
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 14 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`Defendant Shohei Ohtani, a professional baseball pitcher, designated hitter and
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`40.
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`outfielder for the Los Angeles Angels of the MLB and a brand ambassador for FTX, is a citizen
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`and resident of the State of California.
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`41.
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`Defendant Naomi Osaka, a professional tennis player and brand ambassador for
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`FTX, is a citizen and resident of Beverly Hills, California.
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`42.
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`Defendant Lawrence Gene David, an American comedian, writer, actor,
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`television producer, and FTX brand ambassador, is a citizen and resident of Los Angeles,
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`California.
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`43.
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`FTX Insider Defendants are all persons that controlled, assisted and worked at
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`FTX that helped promote, and sell the FTX YBAs but are not personally involved in the FTX
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`restructuring process.
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`44.
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`Defendant Caroline Ellison is the former CEO of Alameda Research, LLC, a
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`trading firm launched by Defendant Sam Bankman-Fried. She oversaw many of the risky bets
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`Alameda took with regard to FTX customers’ crypto tokens. Defendant Ellison is a resident of
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`Hong Kong.
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`45.
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`Defendant Sam Trabucco, the former Co-CEO of Alameda Research, LLC, is a
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`citizen and resident of the State of California.
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`46.
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`Defendant Gary (Zixiao) Wang, co-founder of Alameda Research and FTX, upon
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`information and belief is currently residing in the Bahamas.
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`47.
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`Defendant Nishad Singh, the former Director of Engineering of FTX, upon
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`information and belief is currently residing in the Bahamas.
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`48.
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`Defendant Dan Friedberg, the former Chief Compliance Officer of FTX, is a
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`citizen and resident of Seattle, Washington.
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 15 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`JURISDICTION AND VENUE
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`49.
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`This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §
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`1332(d)(2)(A) because this is a class action for a sum exceeding $1,000,000,000.00 (one billion
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`dollars), exclusive of interest and costs, and in which at least one class member is a citizen of a
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`state different than the Defendants.
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`50.
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`This Court has personal jurisdiction against Defendants because they conduct
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`substantial and not isolated business in Florida, and/or have otherwise intentionally availed
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`themselves of the Florida consumer market through the promotion, marketing, and sale of FTX’s
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`YBAs in Florida, which constitutes committing a tortious act within the state of Florida.
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`Defendants have also marketed and participated and/or assisted in the sale of FTX’s unregistered
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`securities to consumers in Florida. Further, Defendants have engaged in a conspiracy in which
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`some of the co-conspirators—including some who are Defendants in this action—committed overt
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`acts in furtherance of the conspiracy in the State of Florida. This purposeful availment renders the
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`exercise of jurisdiction by this Court over Defendants permissible under traditional notions of fair
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`play and substantial justice.
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`51.
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`Venue is proper in this District under 28 U.S.C. § 1391 because thousands of Class
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`Members either reside in this District; Defendants engaged in business in this District; a substantial
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`part of the events or omissions giving rise to the claims at issue occurred in this District; and
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`because Defendants entered into transactions and/or received substantial profits from Class
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`Members who reside in this District.
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`52.
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`All conditions precedent to the institution and maintenance of this action have been
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`performed, excused, waived, or have otherwise occurred.
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`Case 1:22-cv-23753-KMM Document 16 Entered on FLSD Docket 12/16/2022 Page 16 of 97
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`Edwin Garrison, et al. v. Samuel Bankman-Fried, et al.
`Amended Class Action Complaint and Demand for Jury Trial
`FACTUAL ALLEGATIONS
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`A.
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`Background on FTX and its Key Players.
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`53.
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`Until seeking the protection of the Bankruptcy Court, the FTX Entities operated a
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`multi-billion-dollar mobile application cryptocurrency investment service (the “Deceptive FTX
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`Platform”) that placed cryptocurrency trade orders on behalf of users like Plaintiff and Class
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`Members and offered interest bearing cryptocurrency accounts.
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`54.
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`Attached as Exhibit A is the Expert Report of Paul Sibenik, Lead Case Manager at
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`CipherBlade Blockchain Investigation Agency, which is incorporated into this complaint in its
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`entirety by reference, and additionally as cited.
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`55.
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`As Sibenik explains, in many ways, centralized cryptocurrency exchanges,
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`including FTX, are analogous to banks albeit for the cryptocurrenc