Taylor Swift Declined FTX Deal Due to Risk Associated With SecuritiesApr 21, 2023, 4:02PM
Several other celebrities who endorsed FTX are the target of a class action lawsuit from attorney Adam Moskowitz.
Country-pop artist Taylor Swift declined a deal with the now-collapsed cryptocurrency exchange FTX, according to a report from The Block.
Swift Saw Risks in FTX
Swift was once in talks with FTX regarding a $100 million deal that could have seen the cryptocurrency exchange sponsor one of her recent tours.
However, when Swift was asked to take part in a promotion deal involving blockchain-based non-fungible tokens (NFTs) and event ticketing, Swift asked the company: “Can you tell me that these are not unregistered securities?”
Swift ultimately refused the deal.
The Block obtained its information from attorney Adam Moskowitz, who is currently advancing a class action lawsuit against celebrity promoters that were involved in FTX promotions prior to the firm's collapse in November 2022.
Other celebrities named in Moskowitz's class action suit include former NBA star Tom Brady, "Shark Tank" host Kevin O’Leary, "Seinfeld" writer Larry David, and NBA star Shaquille O’Neal — who was supposedly difficult to serve charges to.
Those other celebrities did not apply so much scrutiny to their deals. Moskowitz noted that Swift was “the one person I found that did [due diligence].”
While it is unclear why Swift saw danger when other celebrities did not, Tesla CEO Elon Musk pointed out one possible way in which she may have become aware of the risk. He noted that Swift's father is an investment banker and called her "smart."
SEC Often Charges Celebrities
As a class action lawsuit, Moskowitz’s action does not carry as much weight as charges from the U.S. Securities and Exchange Commission (SEC) itself.
To date, the SEC has only filed charges against FTX founder Sam Bankman-Fried and other associates — not the celebrities who were involved in endorsing FTX.
The SEC nevertheless charges celebrities in association with blockchain projects that it considers securities. The SEC charged Kim Kardashian over her endorsement of EthereumMax (EMAX) in October 2022. Former NBA player Paul Pierce was also charged for promoting EthereumMax in February 2023.
Several celebrities were also charged in relation to Justin Sun’s TRON and BitTorrent crypto projects this March. Though most settled with the regulator, two musical artists — Soulja Boy and Austin Malone — did not immediately settle.
In light of its past actions, it is possible that the SEC will take action against celebrities involved in the promotion of FTX in the future.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.