Crypto Exchange FTX Probes Reclaiming Payments Made to Celebrity Athletes and Sports Teams for Promotions
Summary:
Crypto exchange FTX investigates reclaiming millions paid to celebrities and sports teams for promotional efforts. High-profile figures include Shaquille O'Neal, Naomi Osaka, David Ortiz, and Trevor Lawrence. Lawsuits filed by FTX users claim promotion of unregistered securities. FTX also sues LayerZero Labs and former executives for fund misappropriation.
Crypto exchange FTX, which filed for bankruptcy in November 2020, is currently investigating the possibility of reclaiming the millions of dollars it paid to celebrity athletes and sports teams for their promotional efforts. In a court filing on August 31, FTX's financial advisors provided a detailed list of the high-profile individuals and businesses that received payment, examining whether these payments can be reversed under bankruptcy rules. This list includes $750,000 to Shaquille O'Neal, over $300,000 to Naomi Osaka, over $270,000 to David Ortiz, and over $200,000 to Trevor Lawrence. The Golden State Warriors received nearly $420,000, and the Miami Heat received over $250,000 in various payments. However, FTX cautioned that the final amount it can recover may differ significantly from the reported figures. Many of the celebrities mentioned in the filing are facing class action lawsuits from FTX users who claim that they promoted the exchange, leading to the sale of unregistered securities. FTX has also initiated legal action against LayerZero Labs, seeking to recover $21 million that was allegedly withdrawn illegally before the exchange's bankruptcy. In addition, FTX has sued its co-founder and former top executives in an effort to reclaim over $1 billion they are accused of misappropriating.
Published At
9/11/2023 1:54:20 AM
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