FTX in Crisis: Bankrupt FTX Investigates Reclaiming Millions Lost in Celebrity Endorsements
FTX, a bankrupt cryptocurrency exchange, is attempting to recover millions of dollars paid to professional sportsmen and sports teams to promote the exchange prior to its bankruptcy filing in November. Know more on how bankrupt FTX Investigates Reclaiming Millions from sports celebratity.
Financial advisors for FTX provided a thorough list of well-known individuals and firms it paid for in its marketing efforts on August 31 in a court document that spanned over 180 pages. This list was provided to determine if the recipients were covered by regulations that allow insolvent corporations to recoup payments made to them.
The list includes payments of over $200,000 to American football quarterback Trevor Lawrence, over $300,000 to tennis pro Naomi Osaka, over $270,000 to retired baseball great David Ortiz, and over $750,000 to former basketball pro Shaquille O’Neal.
The Golden State Warriors’ professional basketball club received close to $420,000 in compensation, and the Miami Heat received over $250,000.
However, the filing stated that the actual amount that FTX may collect “may vary materially from the amount reported.”
FTX customers who sought damages have filed class action lawsuits against many of the celebrities included in the most recent filing.
Groups of FTX consumers have filed lawsuits against O’Neal, Osaka, and the Golden State Warriors for allegedly endorsing the exchange, which they contend marketed unregistered stocks.
The most recent case, filed on September 9 against the cross-chain protocol LayerZero Labs, seeks to recoup $21 million that FTX claims was fraudulently withdrawn prior to the exchange’s insolvency in November of last year. The exchange has filed a number of lawsuits in an effort to reclaim cash.
Sam Bankman-Fried, a co-founder, and several former top executives were sued in July in an effort to recoup more than $1 billion in funds that were allegedly misused.
Keywords: FTX bankruptcy update, Celebrity endorsements lawsuit FTX, FTX customer class action lawsuits
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