Lawyer reveals Taylor Swift turned down $100M crypto deal with FTX and 'dodged a bullet by doing her homework'
LOS ANGELES, CALIFORNIA: Attorney Adam Moskowitz said Taylor Swift avoided being implicated in a $5 billion lawsuit against FTX, which sought to recover money paid by the now-defunct company to celebrities who endorsed it. Moskowitz disclosed this during a recent podcast where he explained that various entertainers and athletes had been accused of promoting the sale of unregistered securities, a violation of US law. "The lawsuit accused various entertainers and athletes of promoting the sale of unregistered securities, which is against US law," reported RadarOnline.com.
Despite Swift's involvement with FTX, Moskowitz revealed that she had done her due diligence by asking whether the deal involved unregistered securities. She turned down a $100 million crypto deal with FTX. "The one person I found that did that was Taylor Swift. In our discovery, Taylor Swift actually asked them, 'Can you tell me that these are not unregistered securities?'" he said. It was reported that Swift was not seeking an endorsement deal but was instead considering potential NFT deals with FTX. The lawsuit demanded that several celebrities, including Tom Brady, his ex-wife Gisele, NBA star Steph Curry, Shaquille O’Neal, Larry David, and Naomi Osaka, return the millions they were paid for endorsing the company.
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More legal woes for Sam Bankman-Fried and ex Caroline Ellison as class action suit demands damages
Class action lawsuit over FTX collapse
Several high-profile celebrities and athletes, including Tom Brady, Gisele Bündchen, and Steph Curry, are facing a class action lawsuit following the collapse of the crypto exchange app FTX. The lawsuit was filed in a Florida federal court just days after the sudden bankruptcy of FTX, which left users with significant losses.
The lawsuit alleges that FTX founder Sam Bankman-Fried engaged in a fraudulent cryptocurrency scheme that was "designed to take advantage of unsophisticated investors from across the country." Bankman-Fried is accused of enlisting several celebrities and athletes, including Brady, Bündchen, Curry, Shaquille O'Neal, and others, to promote the scheme. The collapse of FTX, combined with Bankman-Fried's resignation, is said to have cost consumers over $11 billion. Attorneys representing the plaintiffs are seeking to recover their losses in the lawsuit.
Multi-billion dollar collapse of FTX
In December, FTX founder Sam Bankman-Fried was arrested on charges of wire fraud and securities fraud as previously reported by RadarOnline.com. The arrest marked a significant move by regulators to hold individuals accountable for the multi-billion dollar collapse of FTX. The company and its affiliates had filed for bankruptcy in November, with Bankman-Fried stepping down from his role as CEO.
The collapse of FTX was triggered by a highly concentrated position in self-issued FTT coins, which Bankman-Fried's hedge fund Alameda Research had used as collateral for billions in crypto loans. The company froze assets and declared bankruptcy shortly after Binance, a rival exchange, announced that it would sell its stake in FTT, leading to a massive withdrawal of funds.
Furthermore, it was later revealed that FTX had commingled customer funds with Alameda Research, resulting in the loss of billions in customer deposits.