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Crypto Influencer Can Be Served By Twitter In FTX Investor Suit

Crypto Influencer Can Be Served By Twitter In FTX Investor Suit

The rise of social media has led to a new kind of celebrity: the influencer. With the increasing popularity of cryptocurrency, many crypto influencers have emerged on platforms such as YouTube and Twitter, promoting various crypto products and services. However, some of these influencers have found themselves in legal trouble for failing to disclose their financial gains from such promotions.

One such case is the class-action lawsuit against crypto influencers linked to FTX promotions. The lawsuit alleges that these influencers failed to disclose their financial interests in promoting the FTX crypto exchange, thereby misleading investors.

The Moskowitz Law Firm, which represents the plaintiffs in the lawsuit, recently received permission from a Florida district court judge to serve one of the defendants, Tom Nash, via Twitter. Nash, a cryptocurrency YouTuber from Georgia, was the final defendant to be served.

Why Twitter?

The court filing outlines the process for serving Nash via Twitter, which involves sharing a legal notice URL from the law firm’s official Twitter account while tagging Nash’s handle. The law firm also had to send the URL to Nash’s publicly known email address.

“Nash has an established Internet-based business, utilizes electronic means, including Twitter, as reliable forms of contact; and has publicly acknowledged <a> personal email address.”

The decision to serve legal notice via Twitter highlights the role of technology in modernizing legal processes. It also acknowledges that social media has become an integral part of people’s lives, including influencers like Nash.

According to the court filing, Nash’s frequent online presence and use of electronic means, such as Twitter, make it a reliable way to contact him. It also mentioned that a previous email sent to Nash’s public email address did not bounce back, indicating its validity.

Other Defendants

The lawsuit also names nine other defendants, including seven YouTubers like Graham Stephan, Brian Jung, and Ben Armstrong (known as “BitBoy Crypto,”) as well as the talent management company Creators Agency and its founder, Erika Kullberg.

One of the defendants, Ben Armstrong, failed to attend the court hearing on April 20th. Following the missed attendance, Armstrong shared a Twitter post claiming he did not care.

Implications

The use of Twitter to serve legal notice to a defendant in a class-action lawsuit raises interesting legal implications. US federal law permits alternative methods of serving foreign defendants, ensuring that these methods comply with international agreements and effectively notify the defendant.

It also underscores the need for influencers to disclose their financial interests in promoting crypto products and services. Failure to do so can result in legal action, as seen in the FTX investor lawsuit.