The collapse of the cryptocurrency exchange FTX has been all over the headlines since the company filed for bankruptcy in November 2022. Shortly after that, the Securities Exchange Commission (SEC) filed a complaint against FTX executives, including investor Sam Bankman-Fried, because the company’s cryptocurrency is classified as a security, but was never registered as such.
Lawyer Adam Moskowitz is representing customers who lost money when FTX filed for bankruptcy, and he includes celebrities who endorsed the product, like Shaq, Tom Brady, and Larry David, in the lawsuit. But you know whose name isn't on the suit? Taylor Swift's.
DON'T MISS: Taylor Swift Set to Make an Extraordinary Amount of Money During Her Era's Tour
While recording “The Scoop” podcast, Moskowitz told listeners that the business-savvy pop idol was the only person to do her due diligence when it came to making sure FTX was on the up and up.
"In our discovery, Taylor Swift actually asked them: 'Can you tell me that these are not unregistered securities?'" Moskowitz told podcast host Frank Chaparro. He also added that Swift has never promoted FTX and pulled out of the deal.
Disney+
The deal was reportedly a $100-million tour sponsorship, including selling tickets as NFTs. Swift’s astute question helped her avoid a lawsuit claiming celebrity endorsements "made numerous misrepresentations and omissions." And possibly another sticky ticket situation regarding her overwhelmingly popular Eras tour.
Swift's decision stands out in light of all the other celebrities who did agree to deals with FTX, including National Basketball Association star Steph Curry, supermodel Gisele Bundchen, and Shaquille O'Neal. Those three plus several others are now the subject of a class-action lawsuit that accuses the celebrities of promoting a Ponzi scheme.
Sign up for Real Money Pro to learn the ins and outs of the trading floor from Doug Kass’s Daily Diary.
