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NBA and NFL stars Steph Curry and Tom Brady are feeling the effects of last month’s collapse of the FTX Exchange, which was a centralized cryptocurrency exchange. It collapsed on Nov. 11, 2022, following a "complete failure of corporate control."
The collapse has since led to multiple investigations and lawsuits being filed over alleged misuse of customer funds. The investigations include celebrities like Steph Curry and Tom Brady, who were major endorsers of the now-bankrupt cryptocurrency platform.
The investigation into Curry, Brady and other celebrities was announced last month by Joe Rotunda, the director of enforcement for the Texas State Securities Board. This is being done to ensure no security laws were broken by the celebrities that promoted the FTX.
Texas state regulators have also been communicating with regulators from other US states in an effort to cooperate on a large-scale investigation. Joe Rotunda explained the decision to The Texas Tribune.
“Anyone who renders investment advice in Texas typically needs to be registered and they typically have to truthfully disclose all known material facts. In Texas, there is not a different system of justice or regulation for people who are celebrities.”
Class action lawsuit filed against Steph Curry, Tom Brady and multiple other celebrities
A class-action lawsuit was also reportedly filed last month that names both Steph Curry and Tom Brady, in addition to other celebrities. It also includes the founder and former CEO of the FTX Exchange, Sam Bankman-Fried. The massive lawsuit was filed in Florida.
Its primary claim is that the celebrities “either controlled, promoted, assisted in, and actively participated” in a scheme where they “aggressively marketed” FTX. The report comes via Zachary Halaschak of the Washington Examiner.
The lawsuit also described FTX as:
“A house of cards, a Ponzi scheme where the FTX Entities shuffled customer funds between their opaque affiliated entities, using new investor funds obtained through investments in the YBAs and loans to pay interest to the old ones and to attempt to maintain the appearance of liquidity.”
Curry and Brady both appeared in commercials promoting the FTX.
As of now, it remains to be seen what the outcome of the lawsuit will be for Curry, Brady and other stars involved.
