According to U.S. District Judge Kevin Moore, there is some doubt as to whether former NBA great Shaquille O’Neal and tennis player Naomi Osaka were properly served and may be thus removed from the FTX lawsuits.
On March 9, Judge Moore issued a preliminary order directing the plaintiffs to show cause by December as to why O’Neal and Osaka should not be excluded from the case.
The two athletes may be dropped from the FTX lawsuit, the court said, because it’s unclear if they’ve received appropriate service.
“The court ordered plaintiff, not the defendants, to move for an extension of time to hold the scheduling conference.“
The plaintiffs, who are suing FTX, a cryptocurrency exchange, for alleged fraud, market manipulation, and unethical business activities, are disappointed by this judgment.
High-profile celebrities who have been cited as defendants in the cases include both the sports players. Yet, according to Judge Moore’s ruling, they might not even be a part of the lawsuit.
The number of FTX claims is currently increasing, and some claimants have asked that the litigation against the insolvent exchange be consolidated.
On March 8, a court rejected the plea for consolidation, citing the necessity for the defendants to react.
The FTX lawsuit shed light on the difficulties cryptocurrency exchanges encounter as they come under greater scrutiny from investors and regulators.
Clear laws and investor safeguards are becoming increasingly important as cryptocurrency use increases.
Although the fate of the FTX litigation is still up in the air, they serve as a helpful reminder of the value of openness, responsibility, and corporate moral conduct in the cryptocurrency sector.