What binds Tom Brady, Taylor Swift, and Elon Musk? A brewing lawsuit in response to the FTX scandal. Tom Brady, along with his then-wife Gisele Bundchen, were among the many celebrities who endorsed the crypto giant. Now that FTX has gone bankrupt, lawyers are going after the celebrities who endorsed the brand.
To put the legal speak simply, the lawyers are asking that the celebrities who endorsed this fraudulent product be held responsible. Many investors in FTX lost money, and many of them were lured into putting their bets on this product because of the influence of these famous stars.
The case hinges on the fact that any security, by law, should be registered. Anything that is not registered is illegal, and FTX, the lawyers say, should be treated as such. Promoting such unregistered securities is also taking part in a scheme that is fraudulent. Therefore, the endorsers of the product are liable for the damage.
While Tom Brady and other stars did not go into the details of these things, another superstar seems to have done so. Taylor Swift was reportedly close to signing a $100 million deal with FTX but she posed the right question and asked,
"Can you tell me these are not unregistered securities?"
While Taylor Swift has not yet responded to the speculation, the deal did not go through. Hence, the musician cannot be sued in this case because she never supported this product.
Elon Musk implicitly castigates Tom Brady and others when praising Taylor Swift
One person who has weighed in on the whole issue is Elon Musk. The Twitter owner said that he was unsurprised by the fact that Taylor Swift made such a smart decision. He credited it to her father being an investment banker.
Taylor Swift's father is Scott Kingsley Swift, a former stockbroker for Merrill Lynch. Her mother, Andrea Gardner Swift, also previously worked as a mutual fund marketing executive. Hence, it is not surprising, as Elon Musk pointed out, that she might have picked this up from her parents.
Tom Brady is expected to be served with a $5 billion class action lawsuit. If only Tom Brady had studied the fine print of this deal as well as his NFL films!