Defunct FTX Now Going After Former Celebrity Partners

By Vince • September 11, 2023 1:52 pm • Comments

The now-defunct FTX certainly isn’t doing itself any favors when it comes to its public image.

If FTX was adept at one thing it was marketing through public relations—this is how the little-known exchange purportedly experienced its meteoric rise.

Marketing deals, celebrity endorsements, and glowing media coverage all served to push the exchange into the minds of unsuspecting customers.

Trending: Ron’s Basement’s Cat Jasper Reaches $1.5 Million Market Cap Following Launch of Unicorn Fart Dust

According to recent court filings, the bankrupt FTX wants that money back from celebrities who previously agreed to promote the company.

Crypto analyst Marty provided a table of the celebrities and their original payouts:

“Clawbacks of celebrity payments begins. These are reverse payment requests. ie. Refunds.

The list includes $750,000 made to former basketball pro Shaquille O’Neal, over $300,000 to Tennis pro Naomi Osaka, over $270,000 to former baseball star David Ortiz, and over $200,000 to American football quarterback Trevor Lawrence. Miami Heat also for the standout rights.”

Inner City Press explained: “Seems DOJ at trial will be using FTX ads by Tom Brady, Gisele Bündchen & Larry David: “celebrities are featured in ads describing “FTX” as “a safe and easy way to get into crypto;” tonight’s filing has YouTube links. Still nothing on delay.”

Coin Telegraph provided these details:

Also included are nearly $420,000 made to the basketball team the Golden State Warriors, and over $250,000 to the Miami Heat.

The filing warned, however, that the final amount FTX may recover from the efforts “may vary materially from the amount reported.”

Crypto News outlined how an FTX ‘refund’ is even possible: “FTX has reviewed several payments made to individual athletes, as well as MLB and Formula 1 racing teams, to determine if they were subject to Chapter 11 rules that would allow FTX to reverse them.”

Forbes reports that Taylor Swift was among one of the only celebrities who did her due diligence and backed out of an FTX endorsement deal.

Bitcoinist reports:

The exchange is looking to clawback approximately $18 million in prepayments made to celebrities, as well as sports teams and arenas.

The largest single prepayment that the exchange is looking to recover is a $3,398,046.99 payment made toward the deal for the naming rights of the Miami Heat Arena.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

 

Search ProCoinNews