Several surveys have agreed with the fact that people hop on to the digital asset trend once a celebrity endorses or promotes cryptocurrency on their social media accounts.
Famous NFL quarterback Tom Brady and NBA point guard Stephen Curry are allegedly being questioned by the Texas Financial regulator over their publicity of the now-bankrupt crypto exchange FTX. The director of enforcement at the Texas State Securities Board Joe Rotunda has been looking into examining payments accepted by celebrities to advertise FTX US.
Rotunda said that while the celebrities’ involvement is being looked into, it is not of the highest priority but will be a significant part of the regulatory authority’s investigation into FTX’s decline. Brady and Curry’s names have also featured in November 15 class-action lawsuit against FTX, along with the famous Chief Executive Officer Sam Bankman-Fried. The lawsuit accused the sports personalities of controlling, supervising, supporting, and participating in FTX Trading Ltd and West Realm Shires Services Inc.
Several surveys have agreed with the fact that people hop on to the digital asset trend once a celebrity endorses or promotes cryptocurrency on their social media accounts. This has led to several cryptocurrency firms signing celebrities to get their digital assets into the market.
Recently in October, Kim Kardashian was legally fined by the United States Securities and Exchange Commission (SEC) for putting up a post about EMAX for $250,000 without disclosure. While Kardashian did not admit or deny SEC’s charges, the legal fine was settled with the celebrity agreeing to not promote digital tokens until 2025.
Since the firm’s decline on November 11th, the board has massively increased its investigation to test the influence of this multibillion-dollar bankruptcy case.
According to Joe Rotunda, anyone who provides investment suggestions in Texas essentially needs to be authorized. They also have to honestly reveal the facts about the deal with the firm. He added on to say that there was no different legal procedure for celebrities. Even though whether any famous Texan will be thoroughly investigated is still a question, according to the law enforcement officer, his team is working on gathering suitable parties based on recent court filings.
Essentially, the team will be reviewing what facts were disclosed by the celebrities, and how much they received for their involvement. However, the relevant law, in this case, dates back to 1985, so its relevance to today’s times is yet to be determined.
The FTX decline is presently a controversial subject, and regulatory authorities are worried about its impact and consequences in the crypto world. In the past week, Plaintiff Edwin Garrison also submitted a lawsuit against celebrities and FTX. The celebrities included Gisele Bundchen, Kevin O’Leary, the Golden State Warriors, Larry David, and Shaquille O’Neal, among others.
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