FTX’s Sam Bankman-Fried In Contact for $100 Million Sponsorship With Pop Star

• Are Tom and Steph under special surveillance of Texas regulators?  

FTX was among the globally popular cryptocurrency exchanges, and as per volume, it was the third leading crypto exchange in the crypto industry. The exchange filed for bankruptcy under chapter 11 of bankruptcy laws on November 11, 2022. 

The bankruptcy procedure was initiated by the founder and former chief executive officer of FTX, Sam Bankman Fried. After the bankruptcy filing, he resigned from the company’s CEO post.

Sam Bankman Fried, the former Chief Executive Officer of FTX, was in the last stage of a collaboration deal with Taylor Swift, a popular pop star, but the deal wasn’t completed because of FTX’s collapse. 

 Sam Bankman and the representative of Taylor Swift’s deal declined the collaboration.

FT reported that the sponsorship deal of Taylor was opposed by some of the members of the FTX marketing team, and a close link quoted that “No one really liked the deal. It was too expensive from the beginning,” lead added, “very high . . . fucking high. That’s front of the soccer jersey level prices.”

The lead added, “Taylor would not, and did not, agree to an endorsement deal. The discussion was around a potential tour sponsorship that did not happen.”   

Suppose the sponsorship deal between FTX and Taylor Swift has been finalised. In that case, she may have also faced investigation from regulators currently investigating other celebrities like Tom Brady, Steph Curry, and more who are under surveillance of Regulators. 

Joe Rotunda, Director of Enforcement at the Texas State Securities Board, said in a recent interview with Bloomberg, “We are taking a close look at them. The stars’ endorsements aren’t the most immediate priority, they’re but still a focus in the regulator’s larger probe into FTX’s collapse.”

“There are a couple different layers to peel away to get down to it,” Rotunda added.

It should be noted that for all those celebrities who endorse crypto firms, the recent FTX collapse was the loudest lesson. Still, before the collapse, the US Securities and Exchange Commission (SEC) was cracking down on plugs without proper disclosures. The Texas examination is a reminder that state securities laws might also apply.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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