Taylor Swift avoided FTX’s $5 billion lawsuit. The Pop superstar was almost one of the 11 celebrities currently embroiled in a pricey class action lawsuit against Sam Bankman-Fried’s FTX—but she inquired whether she would be promoting unregistered securities.
Fast facts
- Taylor Swift avoided FTX’s $5 billion lawsuit. Swift was “the one person” who asked if she would be promoting unregistered securities, according to Adam Moskowitz, one of the lawyers leading a class action case against FTX and its celebrity ambassadors.
- Swift was apparently in negotiations with FTX for a $100 million sponsorship contract in 2022, but she did not pursue it.
- Shaquille O’Neal (Shaq), Tom Brady, and Larry David are among the FTX celebrity endorsers facing a class action lawsuit.
Taylor Swift, a well-known singer-songwriter who has received 12 Grammy nominations, is said to have done research on the now-defunct cryptocurrency exchange FTX and turned down a sponsorship offer from former FTX CEO Sam Bankman-Fried.
In contrast to other celebrities who invested in FTX, Adam Moskowitz, one of the attorneys leading a $5 billion class-action lawsuit against 11 celebrity endorsers of FTX, revealed during an episode of the Block’s Scoop podcast that Swift took the step of consulting with her lawyer when approached by SBF.
Taylor Swift was the only one I identified that spoke with their lawyer, according to Moskowitz, who added:
“In our discovery, Taylor Swift actually asked that. “Can you tell me that these are not unregistered securities?”
When questioned about why the celebrities named in the lawsuit did not consult with their lawyers before signing such contracts, Moskowitz told The Scoop. According to Moskowitz, promoting unregistered securities for financial benefit makes an individual responsible under state securities laws.
According to the Financial Times, the now-bankrupt FTX was in talks with Swift over a $100 million sponsorship deal, which fell through shortly before FTX’s bankruptcy in November of last year.
Swift’s foresight spared her from making a fatal error. According to Moskowitz, the FTX lawsuit is seeking $5 billion in damages from celebrities who promoted the sale of unregistered securities.
The case names 11 celebrities, as well as one basketball team, including Tom Brady, Seinfeld creator Larry David, and Shaquille O’Neal. “If they had just asked that question,” Moskowitz said of the celebrities currently participating in the lawsuit.
Elon Musk, the CEO of Tesla and Twitter, who also turned down an offer from Bankman-Fried when the former FTX executive wanted to invest in Twitter, tweeted Wednesday:
“I’m not surprised. Taylor is smart and her father is a well-regarded investment banker.”
Scott Swift, the Grammy winner’s father, is a managing director of the Swift Group, a wealth management organization owned by Bank of America. In 1980, he also began his career as a financial advisor with Merrill Lynch Wealth Management.
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Caleb is a technical writer at AlteBlock with over 2 years of experience in covering DeFi-related content such as crypto news, exchange reviews, and guides. He is also a Civil engineering graduate who can be found on-site when not writing an article.
