• A federal judge has narrowed claims against celebrities in the FTX lawsuit.
• The judge dismissed 12 of 14 claims, indicating lack of evidence of knowledge of fraud.
• Only two claims under Florida and Oklahoma law will proceed, focusing on unregistered securities.
• Investors plan to amend the complaint with additional defendants.
• Shaquille O'Neal and Trevor Lawrence have previously settled related allegations.

A federal judge has narrowed a lawsuit against celebrities including Tom Brady, Stephen Curry, and Shohei Ohtani for their roles in promoting the now-collapsed cryptocurrency exchange FTX. The investors alleged that these stars ignored "red flags" and sought to mislead customers as part of a partnership with the company, founded by Sam Bankman-Fried. In a recent ruling, U.S. District Judge K. Michael Moore stated that the plaintiffs did not prove the defendants had knowledge of fraud, and most claims were dismissed due to insufficient evidence, according to Channel News Asia and Reuters.

The court dismissed the majority of claims while allowing two allegations to proceed, focusing on potential violations of Florida and Oklahoma law regarding the sale of unregistered securities. The decision reflects the judge's view that while FTX may have needed celebrity endorsements, the mere act of promoting does not imply complicity in fraudulent activities, as stated in reports from India Times and Reuters.

Adam Moskowitz, representing the investors, indicated that the plaintiffs view this ruling as a partial victory given that Florida law imposes strict liability, which does not require proof of knowledge of fraud. He mentioned plans to file an amended complaint that may include additional defendants from other sectors, such as Major League Baseball and Formula 1 Racing. Furthermore, previous settlements by Shaquille O'Neal and Trevor Lawrence are noted, reflecting a trend of celebrities navigating legal challenges related to FTX, according to Channel News Asia and India Times.