Several prominent figures, including former NFL quarterback Tom Brady and current NBA point guard Stephen Curry, are apparently being probed by the Texas financial authority for their participation in promoting the failed cryptocurrency exchange FTX.
According to a Bloomberg report from the 22nd of November, Texas State Securities Board director of enforcement Joe Rotunda stated that his agency is investigating the amount of money paid to celebrities for their endorsements of FTX US, as well as the transparency and accessibility of the related disclosures.
The regulator is “taking a close look at them,” according to Rotunda, but an investigation into the celebrities’ admiration for FTX is not a “high priority.” Rather, it is “part of the larger investigation by the regulator investigating FTX’s collapse.”
On November 15, a class action lawsuit was filed against the corporation naming Brady, Curry, and the former CEO of FTX, Sam Bankman-Fried. The lawsuit charges them with “control, promotion, support, and active participation” in FTX Trading LTD and West Realm Shires Services Inc.
The class action includes Gisele Bündchen, the Golden State Warriors basketball franchise, NBA player Udonis Haslem, and Seinfeld co-creator Larry David.
According to a prior study, nearly half of retail investors will blindly follow digital asset advice from the social media accounts of celebrities and influencers, causing several to utilize their platform to promote cryptocurrency products and projects.
Kim Kardashian was fined in October by the United States Securities and Exchange Commission (SEC) after she “talked on social media about the EMAX without disclosing that she was paid $250,000 to post about it.”
Kim Kardashian has accepted SEC charges by agreeing not to publicize cryptocurrency assets until 2025, although she has neither acknowledged nor contested the allegations.