FTX Abandoned Taylor Swift Deal, Not the other way around

Image source: NME

Now Defunct Cryptocurrency Exchange FTX withdrew from the planned deal with Taylor Swiftnot the other way.

According sources cited by The New York TimesSwift signed a proposed tour sponsorship deal with FTX in the spring of 2022, following six months of negotiations.

The deal was reportedly worth up to $100 million and discussions had taken place on other partnership approaches before settling on the tour sponsorship opportunity.

However, after Swift’s team signed the sponsorship deal, the former CEO of FTX Sam Bankman-fried withdrew, leaving Swift’s team “frustrated and disappointed,” the report said, citing two people familiar with the matter.

Previous reports had claimed that Swift backed out of the deal after conducting due diligence on FTX, asking the exchange to prove that its cryptocurrencies were not unregistered securities.

The reports cited Adam Moskowitz, the lawyer handling a class action lawsuit against FTX promoters such as Shaquille O’Neal and Tom Brady.

However, in an interview with the NYT, Moskowitz said he had no inside information about the talks.

News about Swift’s possible partnership with FTX first emerged in December, amid a wave of negative press surrounding the exchange.

At the time, FTX was dealing with a liquidity crisis and was unable to meet customer deposits, which ultimately resulted in its closure in November.

Since then, Bankman-Fried and his associates have faced accusations of using client funds to support their business venture, Alameda Research, as well as for personal investments.

Bankman-Fried left the firm in November and has been charged by various agencies in connection with his alleged actions. FTX is currently in bankruptcy proceedings as it struggles to pay its customers and creditors.

While Swift’s deal with FTX fell through, other celebrities who promoted the platform were hit with a class action lawsuit following the company’s implosion.

The class action lawsuit, filed in November of last year, claims that Sam Bankman-Fried, NFL quarterback Tom Brady, and comedian Larry David misled customers and engaged in deceptive practices to sell yielding digital currency accounts. FTX.

Other celebrities included in the lawsuit include Kevin O’Leary, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, Naomi Osaka, and more.

FTX has recovered $7 billion in liquid assets

FTX’s new leadership team has recovered approximately $7 billion in liquid assets as the exchange continues recovery efforts.

Last month, the company revealed that it has made “substantial progress” in asset protection, recovering up to $7 billion in liquid assets so far.

The exchange owed clients roughly $8.7 billion when it went bankrupt last year.

More specifically, FTX was running a deficit of $6.4 billion, which was in the form of fiat and stablecoin that had been embezzled.

Meanwhile, the company has been trying to recover as much money as it can.

On the one hand, FTX has filed a lawsuit in the Wilmington, Delaware bankruptcy court, requesting the return of its founder’s $700 million. Sam Bankman-fried transferred to K5 entities in 2022.