F1 and Mercedes facing lawsuit over cryptocurrency promotion

As the legal battle unfolds over the alleged $11 billion fraud at cryptocurrency exchange FTX, investors have expanded their lawsuit to include Major League Baseball (MLB), Formula 1 and Mercedes-Benz Group AG’s racing team.

Filed in federal court in Miami, the suit accuses these groups of complicity in the "massive, multi-billion-dollar global fraud" orchestrated by FTX, according to Insurance Journal.

The investors claim that MLB, F1 and the Mercedes Formula 1 racing team actively participated in promoting FTX, contributing to the sale of unregulated securities.

F1 and Mercedes facing legal quagmire

MLB's involvement began with a 2021 promotional deal, where umpires sported FTX patches on their sleeves.

Mercedes, a multiple-time F1 world championship-winning team, had signed a sponsorship deal with FTX in September 2021 but severed ties in 2022, removing FTX logos from its cars.

F1, as a whole, now finds itself embroiled in the legal mire, shedding light on the complex relationships between cryptocurrency exchanges, sports entities, and the regulatory challenges faced by the crypto industry.

BREAKING: A group of #FTX users have filed a lawsuit against @MLB and @MercedesAMGF1 for promoting the exchange and its "multibillion-dollar global fraud".#CryptoRegulation #SBF #F1 #MLB pic.twitter.com/dbuJfrotfd

— BSCN (@BSCNews) November 28, 2023

This latest development adds a new layer to the existing class-action suit involving celebrity endorsers, including NFL legend Tom Brady, MLB star Shohei Ohtani and NBA great Steph Curry.

The lawsuit alleges that these prominent entities were not just passive participants but played an active role in FTX's controversial operations.

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