On May 8, 2025, Judge K. Michael Moore dismissed most allegations in the lawsuit against stars like Tom Brady and Larry David for promoting FTX, although a portion related to unregistered securities continues. Could this be a turning point for the crypto industry to regain its reputation? Let's analyze in detail.


Most Allegations Dismissed

Judge Moore ruled on Wednesday, stating that investors #FTX did not prove that the stars – including Tom Brady, Stephen Curry, Naomi Osaka, Larry David, Kevin O’Leary, and the Golden State Warriors – were aware of FTX's fraudulent behavior. He wrote: “While this conduct shows the defendants lacked information, were careless, or even reckless, there is not enough evidence they knew of the fraud or intended to deceive.” The plaintiffs may amend the lawsuit to refile, but most allegations were dismissed.


Context of the FTX Case

Before its bankruptcy in November 2022, FTX was a major crypto brand, allowing trading and betting on the prices of major digital currencies, backed by stars and sports teams. However, CEO Sam Bankman-Fried mismanaged funds, using customer money to cover risks, leading to losses of billions of dollars and bankruptcy. Bankman-Fried is currently serving a 25-year sentence for fraud, although his legal team has appealed since last fall, arguing that he was presumed guilty in court.


Impact on the Crypto Market

This event brings many signals:



  • Increased confidence: The fact that the stars escaped most allegations reduces legal pressure, supporting a cash flow of $3.4 billion for crypto funds last week and Bitcoin ETFs (attracting $1.8 billion).


  • Promoting transparency: The remaining part about unregistered securities forces the industry to comply more strictly, especially with XRP ($2.30) after the SEC settlement.


  • Long-term growth: Forecasts suggest an accumulation of $330 billion into Bitcoin by 2029 (Bernstein) requires clear regulations for sustainable development.



Future Prospects

If the plaintiffs do not successfully refile, the crypto industry could regain its reputation in the next 1-2 years, especially as Oregon (SB 167) and other states improve the legal framework. However, pressure from similar lawsuits remains a challenge.


Conclusion: Can Crypto Escape the FTX Nightmare?

Judge Moore dismissed most allegations against Tom Brady, Larry David, and other stars in the FTX case, although the part about unregistered securities remains. This event reduces legal pressure, paving the way for the crypto industry to regain trust, especially with strong cash flow. Investors should closely monitor to assess the long-term impact.

#anhbacong

Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainty. Please consider carefully before participating.