“The reality is that people need to put on their big boy pants and realize that if you make a decision based on what you hear on the Internet, it's your responsibility,” he says.
Opinions were divided in the comments. Some commentators praised Paffrath for his openness, while others criticized him. “Content creators should also be more careful about who they support,” one wrote. “Especially if it’s a paid endorsement.”
“Yeah,” Paffrath responded in a comment. “Everyone is learning.”
The lawsuit, filed Wednesday in the Southern District of Florida, alleges that a group of eight YouTubers and the powerful management firm Creators Agency, which had many clients who promoted FTX, “promoted, assisted and/or participated” in the crypto company's sale of “unregistered securities.” The filing mentions a high-interest-bearing account in which clients could store their cryptocurrency assets.
The lead plaintiff in the case is Edwin Garrison, an Oklahoma resident who also heads separate class action against celebrities, including Tom Brady and Gisele Bündchen for their role in the FTX commercial. Garrison's lawyer, Joseph Kaye of the Moskowitz law firm, previously told BuzzFeed News that his client was trying to save money for his granddaughter and lost all of his investments.
Garrison was joined in the case against the YouTubers by FTX investors from around the world, including the UK and Australia. Adam Moskowitz, a lawyer representing the plaintiffs, told BuzzFeed News: “Influencers are paid like all other promoters, and therefore they should be held accountable. They are paid so much because they play an important role in social media today, in making financial decisions.”
Following FTX's collapse, several YouTubers named in the lawsuit posted apology videos for their roles in promoting the company.
“I used to be sponsored by FTX. I think it's a shame. And it's a scar. And it sucks. If I could go back, I would change it because people got hurt because of it.” – Paffrath said. Stefan said in November video“At the most basic level, I made the mistake of believing that Sam Bankman-Fried's image had anything to do with his authority.”
None of the influencers named in the lawsuit responded to BuzzFeed News' requests for comment. However, Anderson, who runs the BitBoy Crypto channel, said News outlet Decrypt reported that FTX never paid him and intends to countersue.
In his video about the lawsuit, Paffrath admits that although he promoted FTX, he had no funds on the exchange and did not lose any money. However, he notes that he lost $420,000 on another cryptocurrency investment.
“I’ve always been of the belief that cryptocurrency is speculative and unregulated,” he says, “and if anyone decides to get involved in cryptocurrency, it’s their fault.” Paffrath has removed his videos promoting FTX.
