1 year ago
The Texas State Securities Board is scrutinizing payments received by celebrities to endorse FTX US, arsenic portion of a wider probe into FTX's collapse.
NFL backmost Tom Brady and hoops constituent defender Stephen Curry are reportedly among the celebrities facing a probe from the Texas fiscal regulator implicit their promotion of the now-bankrupt crypto exchange, FTX.
Joe Rotunda, manager of enforcement astatine the Texas State Securities Board reportedly told Bloomberg successful a Nov. 22 study that the Texas State Securities Board is scrutinizing payments received by celebrities to endorse FTX US, what disclosures were made and however accessible they were for investors.
Rotunda nevertheless noted that portion the watchdog was taking a "close look astatine them," the celebrities’ endorsements of FTX were not an "immediate priority,” but would beryllium portion of the “regulator's larger probe into FTX's collapse."
Both Brady and Curry person besides been named successful a Nov. 15 class-action suit against FTX, on with erstwhile FTX CEO Sam Bankman-Fried.
The suit alleged that they “controlled, promoted, assisted in, and actively participated” successful FTX Trading LTD and West Realm Shires Services Inc.
Others named successful the people enactment see exemplary Gisele Bundchen, the Golden State Warriors hoops team, NBA subordinate Udonis Haslem and co-creator of Seinfeld Larry David.
Cointelegraph reached retired to the Texas State Securities Board for remark but did not person a reply earlier publication.
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In the past surveys person recovered that astir fractional of retail investors volition follow integer plus advice from the societal media accounts of celebrities and influencers without question, and this has seen much than a fewer use their power to shill crypto products and projects.
In October, world TV prima Kim Kardashian was fined by the United States Securities and Exchange Commission (SEC) for “touting connected societal media” astir the EMAX without disclosing she was paid $250,000 to station astir it.
Kardashian has neither admitted to nor denied the SEC’s allegations, but settled the charges and agreed to not beforehand immoderate cryptocurrency assets until 2025.
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