Mercedes are facing a lawsuit from users of the now-bankrupt FTX, who sponsored the Silver Arrows from 2021 until November 2022.
FTX filed for bankruptcy towards the end of 2022 which left Mercedes in “disbelief”; however, it’s now the Brackley-based team who are facing issues.
Users of FTX have filed a lawsuit against Mercedes and Major League Baseball (MLB), who were both partners of the crypto exchange site.
The twin-class lawsuits were filed in Florida on November 27, with Mercedes and MLB having been accused of “aiding and abetting and/or actively participating in the FTX Group’s massive, multibillion-dollar global fraud” as well as promoting unregistered securities.
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As with most partnerships, Mercedes had the FTX logo on their cars, clothing and emblazoned in other areas, with them now effectively been accused of facilitating fraud.
In the lawsuit, it states how when their partnerships were still alive, FTX often congratulated Mercedes and MLB on social media, making FTX users and fans of both partnered companies believe that there was an element of trust between them.
The complaint explained how FTX also “regularly cheered on and congratulated” Mercedes F1 and its drivers, which the lawsuit states created a “veneer of trustworthiness with Mercedes F1 fans.”
“This ploy would not have been as effective were it not for Mercedes F1’s parallel promotions of FTX,” the complaint added.
Similarly to MLB, Mercedes removed FTX’s logo from everything shortly after the crypto exchange site filed for bankruptcy.
It’s not just the two companies who have a lawsuit now filed against them, as FTX users have also targeted several celebrities.
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The likes of NBA legend Shaquille O’Neal and NFL icon Tom Brady have also been accused of promoting unregistered securities, whilst other celebrities have stressed that they played no role in making FTX users deposit money.
Whilst some have tried to downplay the role they played others, such as, American footballer Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash, have reached settlements in their cases.
As for FTX’s former CEO and founder, Sam Bankman-Fried, he faced convictions on seven charges related to conspiracy, money laundering, and fraud in November.