“The reality is that people have to put on their big-boy pants and realize that if you make a decision based on something you heard online, it’s your 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 about who they support,” 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 company 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 filing cites a high-interest account in which customers could store their cryptocurrency holdings.
The lead plaintiff in the case is Edwin Garrison, an Oklahoma resident who also leads 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 his granddaughter and lost his entire investment.
In the case against the YouTubers, Garrison was joined by FTX investors from around the world, including the United Kingdom and Australia. Adam Moskowitz, the attorney representing the plaintiffs, told BuzzFeed News: “Influencers are paid, just like all other promoters, and therefore must be held accountable. They are paid so much because today they play an important role in social media, in financial decision-making.”
In the wake of FTX’s collapse, several of the YouTubers named in the lawsuit posted apology videos for their role in promoting the company.
“I 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 change it, because people were hurt by it,” Paffrath. saying. Stephan said in a November video“At the most basic level, I made the mistake of thinking that Sam Bankman-Fried’s image 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 countersue.
Paffrath admits in his lawsuit video that while he had promoted FTX, he had no funds on the exchange and did not lose any money. However, he notes that he had lost $420,000 on another cryptocurrency investment.
“I’ve always believed that cryptocurrencies are speculative and unregulated,” he says, “and if someone decides to get into cryptocurrencies, that’s up to them.” Paffrath has removed his videos promoting FTX.
