Judge dismisses most of the FTX claims against Tom Brady

When the crypto-trading platform FTX imploded, various celebrity endorsers found themselves on the wrong end of a civil action. Now, a judge has dismissed most of the claims against a group of big names, including Tom Brady.

Via MacKenzie Sigalos of CNBC.com, a federal judge in Florida has found that the plaintiffs failed to prove that Brady and others had sufficient knowledge that FTX and CEO Sam Bankman-Fried were engaged in misconduct.

Other defendants include Gisele Bündchen, Steph Curry, Shohei Ohtani, Larry David, the Golden State Warriors, Udonis Haslem, David Ortiz, and Naomi Osaka.

The judge explained that, even thought Brady and others may have been "uninformed, negligent, or even reckless,” the plaintiffs failed to show that they had actual knowledge of fraud or intent to deceive or defraud FTX investors.

The judge did not dismiss claims based on Florida and Oklahoma securities laws; both states prohibit the sale of unregistered securities. Also, the plaintiffs were given an opportunity to amend their complaint, which could result in fresh claims that will stick.

Per the report, Shaquille O'Neal reached a settlement the FTX investors last month.

Brady had been a prominent endorser of what ultimately was a house of cards. It was if nothing else a major embarrassment for the six-time Super Bowl winner. The financial fiasco hasn't really stuck to him the way it could have and arguably should have.

As Brady said in one of his commercials, "FTX is the safest and easiest way to buy crypto." (It was not.)

Brady and others could still end up being stuck with legal responsibility to partially compensate some of the folks who lost money when they took Brady's advice and gave FTX their money.