A-list Hollywood celebs sued for endorsing digital assets

By Al Mayadeen English
Source: News websites
1 Feb 2023 12:18

Legal advisors have warned their celeb clients to distance themselves from crypto endorsements, as processes for legal adjustments are currently underway, the Wall Street Journal reported.

Jimmy Fallon showing off his Bored Monkey NFTs. (YouTube)

Several Hollywood celebrities are facing lawsuits for promoting NFTs and cryptocurrencies after consumers blamed them for misleading the public into investing in digital assets.

Some of the A-list celebs include Madonna, Justin Bieber, Larry David, and NBC’s Tonight Show host Jimmy Fallon, the report states. Kim Kardashian was reportedly sued as well but managed to settle the case without resorting to legal proceedings by agreeing to pay $1.26 million to settle Securities and Exchange Commission charges.

Legal advisors have warned their celeb clients to distance themselves from crypto endorsements as processes for legal adjustments are currently underway, the Wall Street Journal reported.

"Promoting a company and promoting a security issued by a company are not necessarily the same thing," Tibor Nagy Jr., an attorney who represents both plaintiffs and defendants in the cryptocurrency space, told the WSJ. "We should expect judicial guidance and clarity on the rules of the road for celebrities in the next few months."

One particular suit that included Madonna, Gwyneth Paltrow, Kevin Hart, The Weeknd, Post Malone, and Jimmy Fallon all together, concerned the promotion of an NFT art collection known as the Bored Ape Yacht Club.

Tampa Bay Buccaneers quarterback Tom Brady is likewise facing legal action for promoting the crypto exchange FTX, which crashed in November last year.

The lack of clarifications from the Securities and Exchange Commission on what constitutes a virtual token accounts for much of the legal bewilderment.

"The SEC hasn’t shared its view on most if not all of the most widely traded tokens,” a lawyer told the WSJ. "If they had done that, there would be far more clarity for investors and far more clarity for the markets."