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mercedes contributed to fraud according to prosecutors.

Mercedes in court! 'Participation in billion-dollar fraud'

30 November 2023 at 13:30
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  • GPblog.com

Mercedes' Formula 1 team is being sued by users of FTX, a crypto exchange based in the Bahamas. According to them, the team and the US Baseball League MLB helped FTX commit fraud through promotional deals with the exchange.

According to cointelegraph.com, the plaintiffs filed two lawsuits in a Florida court on 27 November, accusing the companies of: "Aiding and abetting and/or actively participating in the FTX Group’s massive, multibillion-dollar global fraud." Mercedes signed with FTX in 2021, which saw their logo appear on the car and racing suits, among other things. That, according to the plaintiffs, was also where the problem lay. They were unhappy that the logo was prominently displayed on the car and elsewhere.

Mercedes instilled confidence in fans

According to the plaintiffs, FTX cheered and congratulated Mercedes and their drivers, leading to a "layer of trust" with the team's fans. The founder and former managing director of FTX, Sam Bankman-Fried, was convicted seven times for fraud and money laundering, among other charges. This led to the company's bankruptcy in November last year. Mercedes then quickly removed the logo from the car, thinking that would be the end. But the story will have one last twist.