Texas Probes Into the Endorsements of FTX by Celebrities

Texas Probes into the Endorsements of FTX by Celebrities
  •  Steph Curry and Tom Brady are currently being investigated.
  •  Rotunda said his staff is still creating a list of relevant people based on recent court filings by FTX’s current CEO.

The Texas State Securities Board began investigating FTX’s operations last month to see whether the exchange’s yield-bearing crypto accounts were providing people with unregistered securities. Since the company’s demise on November 11, the board has dramatically broadened its investigation into the consequences of this multibillion-dollar bankruptcy. 
Promotions of FTX by celebrities such as Steph Curry of the Golden State Warriors and Tom Brady of the Tampa Bay Buccaneers are currently being investigated. It also comes amid a class-action complaint filed in Florida against Curry, Brady, and other celebrities in high-profile sports, alleging that FTX utilized their endorsements as part of a conspiracy to take advantage of “unsophisticated investors.” It also mentions FTX’s former CEO, Sam Bankman-Fried.

Joe Rotunda, the state board’s enforcement director stated:

 In Texas, there is not a different system of justice or regulation for people who are celebrities.

It’s Unknown if Any Prominent Texans Will Be Investigated

It’s unclear whether any notable Texan will be scrutinized, but Rotunda said his staff is still creating a list of relevant people based on recent court filings by FTX’s current CEO John J. Ray III.  Curry and Brady are hardly the first well-known celebrities to face scrutiny or repercussions for endorsing cryptocurrency. Kim Kardashian agreed to pay the Securities and Exchange Commission, the federal securities regulator, $1.26 million last month to resolve claims that she touted a cryptocurrency token on Instagram without disclosing to users that she had been paid $250,000 for the post.

Rotunda indicated that while the monitoring of celebrity endorsement is not his top priority, it remains on his radar while his FTX investigation proceeds. Aside from Texas, the crypto company is under investigation by a slew of other state, federal, and international agencies.

Journalism graduate who loves to write and Karate. And I love exploring new concepts and that brought me into the fascinating crypto and blockchain technology…