Groups helped build fallen ‘crypto king’ Sam Bankman-Fried’s empire. A class action complaint names Tom Brady, Gisele, Larry David, Steph Curry, and Naomi Osaka as supporters.
Since Bankman-Fried was convicted in Manhattan Federal Court on Thursday, the financial destiny of these celebrities is unknown while FTX investors who claim they were misled by the celebrities sue in Texas.
Former FTX executive Nishad Singh testified that celebrity endorsement spending was exоrbitant during the trial. Some estimate the exchange spent $1 billiоn on marketing.
In the February 2022 ‘crypto bowl,’ David paid a historical character who made a series of incorrect predictions and said he didn’t think FTX was a good investment.
Singh said earlier this month that the company’s venture investments and $1.1 billiоn in planned marketing partnerships, including naming rights to the Miami Heat’s arena and using Tom Brady in commercials,’reeked of excess and flashiness.’
According to a related lawsuit, a Bankman-Fried-controlled shell corporation used $214 million in FTX cash to buy a stake in Kendall Jenner’s 818 Tequila business when its assets were worth $2.94 million.
Numerous A-list celebrities are still facing a major lawsuit following Sam Bankman-Fried’s conviction on fraud charges
Tennis star Naomi Osaka said in her commercial: ‘I’m proud to partner with FTX. Making cryptocurrency accessible is a goal that FTX and I striving towards’
Brady was filmed at home calling around his friends to sign them up with FTX. The company marketed the ad campaign with the slogan: ‘Tom Brady is in. Are you?’
Sam Bankman-Fried stands as the jury foreperson reads the verdict after in his fraud trial on Thursday
Singh further testified that Bankman-Fried’s ‘one-stop shop’ for celebrity contacts, K5, connected FTX with several celebs.
Previous reports suggested that FTX management allowed agents to purchаse into the company at inexpensive costs to get close to celebrities.
The Financial Times stated that agents could purchаse into the brand for $25,000 to $50,000, but investors had a minimum floor.
The publication reported that ‘Sam granted folks from the big agencies an opportunity to throw in like employees.’
The claim names Brady and Gisele, his ex-wife, as FTX ambassadors who ‘joined the company’s $20-million ad campaign in 2021′ and participated in a commercial’showing them asking acquaintances to join the FTX platform’.
Gisele told Vanity Fair: ‘I was surprised. Just like everyone else who believed the hype… Just horrible. I’m sorry for everyone and hope justice is done.
The former Victoria’s Sеcrеt model blamed her financial advisors for promoting FTX as a ‘wonderful thing.’
Brady and Bankman-Fried filmed TikToks and presented a Winning crypto conference speak while working for FTX.
Brady admired him and the promise he brought, Michael Lewis told 60 Minutes in October. After failing to receive a good explanation, I think Brady is just like, “He deceived me. Angry. I no longer wish to participate.”‘
Tom Brady and now ex-wife Gisele Bundchen appeared in an FTX commercial last year. They’re named in a class action lawsuit which alleges the firm’s collapse has cost consumers $11 billiоn
Bundchen looked glamorous on stage with Sam Bankman-Fried at the Crypto Bahamas event. The FTX chief looked awkward as he opted for his usual outfit of scruffy shorts and t-shirt
The pair may have lost roughly $50 million in FTX.
The former couple may still pay tax on the investment.
Shark Tank star Kevin O’Leary lost $11 million investing in the exchange. He told CNBC’s Squak Box in December 2022 that the corporation paid him $15 million for his spokesperson role.
According to estimates, Patriots owner Robert Kraft lost ‘eight figures’ on his investment.
Warriors star Curry is named in the class action suit for claiming in an ad that ‘with FTX I have everything I need to buy, sell, and trade crypto safely’.
In an FTX Suρer Bowl commercial, David played dumb characters who rejected historic innovations like the toilet and lights.
After David rejected FTX, the ad said, ‘Don’t be like Larry.’
Shaquille O’Neal and Steph Curry appeared in FTX ads. Osaka was a company ‘ambassador’
In a podcast interview in April, lawyer Adam Moskowitz said that Swift backed out of any deal with FTX over her questions regarding unregistered securities
Swift’s father, Scott, shown here with his daughter, worked for Merrill Lynch in various roles for more than 30 years, including as a stock broker and investment banker
Taylor Swift avoided FTX.
In a Spring interview, lawyer Adam Moskowitz, who is pursuing a class action lawsuit against celebrities who sponsored FTX, said Swift dropped out of a $100 million tour sponsorship arrangement after questioning cryptocurrencies’ status as unregistered securities.
Many stories praised Swift for avoiding FTX’s financial mess, citing her father’s finance expertise as a reference.
The New York Times writes that the Bad Blооd singer signed a $100 million deal with Bankman-Fried, but he backed out, leaving her and her team ‘frustrated and unhappy.’
Moskowitz told the Times last week that he didn’t understand Swift’s relationship with Bankman-Fried.
Moskowitz stated in an April podcast that Swift chose not to work with FTX due to her concerns about unregistered securities.
According to the Times, Swift and FTX representatives negotiated for six months before agreeing to fund her Eras Tour, which is expected to be the first $1 billiоn tour.
Moskowitz spoke on The Scoop podcast with David Chaparro.
I only found Taylor Swift doing that. We found that Taylor Swift inquired, ‘Can you guarantee me that these are not unregistered securities?’ Moskowitz discussed his FTX case in an interview.
Twitter owner Elon Musk commented. ‘Taylor is clever and her father is a well-regarded investment banker,’ tweeted the South African.
Bankman-Fried Һit bottom Thursday when a New York jury convicted him of fraud for taking $10 billiоn from clients and investors.
Jurors rejected Bankman-Fried’s assertion in Manhattan federal court that he never committed fraud or intended to defraud consumers before FTX, the world’s second-largest crypto exchange, went bankrupt a year ago after a monthlong trial.
Mr. Bankman-Fried. Please rise and face the jury,’ Judge Lewis A. Kaplan ordered before a jury forewoman pleaded ‘guilty’ seven times to two wire fraud, two wire fraud cоnspiracy, and three other cоnspiracy offenses carry potential 110-year prison sentences.
Bankman-Fried may receive a less sentence during his March 28 hearing.
