Texas to probe FTX endorsements by Tom Brady, Stephen Curry and other celebs

NFL quarterback Tom Brady and NBA level guard Stephen Curry are reportedly among the many celebrities going through a probe from the Texas monetary regulator over their promotion of the now-bankrupt crypto trade, FTX. 

Joe Rotunda, director of enforcement on the Texas State Securities Board reportedly instructed Bloomberg in a Nov. 22 report that the Texas State Securities Board is scrutinizing funds acquired by celebrities to endorse FTX US, what disclosures had been made and how accessible they had been for buyers.

Rotunda nonetheless famous that whereas the watchdog was taking a “shut take a look at them,” the celebrities’ endorsements of FTX weren’t an “instant precedence,” however can be a part of the “regulator’s bigger probe into FTX’s collapse.”

Both Brady and Curry have additionally been named in a Nov. 15 class-action lawsuit in opposition to FTX, together with former FTX CEO Sam Bankman-Fried.

The lawsuit alleged that they “managed, promoted, assisted in, and actively participated” in FTX Trading LTD and West Realm Shires Services Inc.

Others named within the class motion embrace mannequin Gisele Bundchen, the Golden State Warriors basketball staff, NBA participant Udonis Haslem and co-creator of Seinfeld Larry David.

Cointelegraph reached out to the Texas State Securities Board for remark however didn’t obtain a reply earlier than publication.

Related: The SEC needs to be aiming at Do Kwon, however it’s getting distracted by Kim Kardashian

In the previous surveys have discovered that almost half of retail buyers will comply with digital asset recommendation from the social media accounts of celebrities and influencers with out query, and this has seen various use their affect to shill crypto merchandise and tasks.

In October, actuality TV star Kim Kardashian was fined by the United States Securities and Exchange Commission (SEC) for “touting on social media” concerning the EMAX with out disclosing she was paid $250,000 to submit about it.

Kardashian has neither admitted to nor denied the SEC’s allegations, however settled the fees and agreed to not promote any cryptocurrency belongings till 2025.