Taylor Swift Avoided Signing $100 Million FTX Deal Over Security Concerns

Pop superstar Taylor Swift pulled out of a $100 million sponsorship deal with cryptocurrency exchange FTX due to concerns about unregistered securities, according to Adam Moskowitz, the lawyer handling a class-action lawsuit against FTX’s celebrity endorsers. While discussing the tour sponsorship with FTX in the fall of 2021, Swift allegedly asked the exchange if they could confirm that the securities were not unregistered. Moskowitz claims Swift was the only celebrity to question FTX’s legality.

The Lawsuit Against FTX’s Celebrity Endorsers

The lawsuit targets several FTX promoters, including Tom Brady, Larry David, and Shaquille O’Neal, for endorsing the now-bankrupt crypto exchange. The plaintiffs are seeking over $5 billion from the celebrity endorsers for not doing their due diligence to check whether FTX was breaking the law.

The Allegations Against FTX

The suit alleges that FTX’s crypto currency, FTT, is classified as a security and was sold as an investment contract, but it was not appropriately registered with the Securities and Exchange Commission. The lawsuit accuses the defendants of promoting an unregistered security and making numerous misrepresentations and omissions to drive customers to invest in what was ultimately a Ponzi scheme.

FTX filed for bankruptcy last November, partly due to lavish spending and a $65 billion line of credit, as well as concerns about commingling funds with its sister firm, Alameda. FTX’s founder, Sam Bankman-Fried, was arrested a month later and faces over 100 years in prison if found guilty of charges including securities fraud, money laundering, and bribery.

TL;DR:

Taylor Swift avoided signing a $100 million sponsorship deal with FTX over concerns about unregistered securities, according to the lawyer handling a class-action lawsuit against FTX’s celebrity endorsers. The lawsuit seeks over $5 billion from FTX’s celebrity endorsers, including Tom Brady and Shaquille O’Neal, for promoting an unregistered security and making numerous misrepresentations and omissions. FTX filed for bankruptcy last November, and its founder, Sam Bankman-Fried, faces over 100 years in prison if found guilty of charges including securities fraud, money laundering, and bribery.