Music
How Taylor Swift managed to steer clear of the FTX debacle
The 33-year-old pop star managed to avoid a big headache by asking FTX one question.
Taylor Swift has proven she’s one of “the lucky one(s)” after avoiding the FTX debacle currently happening.
Attorney Adam Moskowitz is handling the class-action lawsuit against multiple celebrity FTX promoters such as Shaquille O’Neal, Tom Brady, Larry David, Stephen Curry, Gisele Bündchen, Naomi Osaka and more.
During a recent interview on The Scoop podcast, Moskowitz revealed that the one celebrity that dodged the FTX bullet was Swift.
This was due to the fact that Swift was the only one to do her due diligence and ask an important legal question.
Swift turned down FTX’s $100 million offer
“The one person I found that did that was Taylor Swift,” Moskowitz said. “In our discovery, Taylor Swift actually asked them, ‘Can you tell me that these are not unregistered securities?’”
Her question referred to the fact that stocks and crypto shares must be registered with the Securities and Exchange Commission before being offered for sale to public investors.
Before opting not to pursue a deal with the company, Swift and her team had reached the late stages of negotiating a sponsorship deal, which reportedly included a ticketing arrangement involving NFTs for her Eras Tour.
Swift ended up turning down the $100 million offer from FTX right before the crypto exchange fell apart last November, with a source telling Rolling Stones that the ’Mastermind’ singer “would not, and did not, agree to an endorsement deal.”
What is FTX?
First started in 2018 and founded by Sam Bankman-Fried, FTX was a cryptocurrency exchange that offered a large range of trading products, including derivatives, options, volatility products, and leveraged tokens.
It ultimately fell apart last November after concerns were raised that the mixing of funds between its sister firm, Alameda, led to mass-customer withdrawals.
FTX didn’t have enough money to fulfill their users’ demand, due to lavish spending and a $65 billion line of credit, lawyers reported.
Bankman-Fried was later arrested in the Bahamas and currently faces over 100 years in prison if found guilty of charges including securities fraud, money laundering, and bribery.