Bankman-Fried Called Off $100M Taylor Swift Deal
- Taylor Swift’s team had allegedly agreed to a deal with FTX before Bankman-Fried backed out.
- Celebrities who promoted FTX are currently facing several legal troubles from aggrieved FTX investors.
- Bankman-Fried’s trial is scheduled to begin in October.
Reports emerged in April that Hollywood star Taylor Swift backed out of an alleged $100 million sponsorship deal with the bankrupt crypto exchange FTX. However, a New York Times piece published on Thursday, July 6, has provided new insight into the story. The report claims that disgraced FTX founder Sam Bankman-Fried pulled out of the deal at the last minute, leaving Taylor’s camp frustrated.
Adam Moskowitz, a lawyer, had previously claimed that Taylor backed out of the deal due to her concerns about cryptocurrencies being unregistered securities. Several of Taylor’s fans praised the singer for possibly avoiding being entangled in the doomed exchange. But today’s report shows Taylor had no interest in pulling out of the deal.
The New York Times report, citing three sources familiar with the sponsorship deal, claims that negotiations between both parties spanned almost six months and that Taylor’s team had signed the deal before Bankman-Fried called it off.
Celebrities who fraternized with FTX during its peak are currently facing several lawsuits for promoting the exchange. Tom Brady and Stephen Curry are some of the celebrities facing legal battles as a result of their involvement with the exchange.
Bankman-Fried’s Trial to Begin in October
Meanwhile, Bankman-Fried is preparing for the start of his trial in October. The 31-year-old faces multiple charges for his alleged role in the collapse of FTX. Bankman-Fried admitted to having poor management skills but pleaded guilty to all charges.
Interestingly, some of his lieutenants and close friends, such as Caroline Ellison, have pleaded guilty and are reportedly cooperating with prosecutors.
FTX filed for bankruptcy in November following troubling reports that the exchange had run into liquidity problems. FTX’s collapse wiped off billions of dollars in customers’ funds. But, prior to its collapse, FTX was one of the biggest crypto exchanges and was widely considered the closest rival to Binance.
Bankman-Fried also rode on the fame of the exchange and built a name for himself in Washington. He was reported to have closely courted some of the powers in Washington in hopes of friendly policies. The former FTX CEO was also known for his political generosity during the US elections.
However, FTX’s collapse raised concerns about the future of cryptocurrencies and the urgent need to regulate the industry. In response to these concerns, US regulators are cracking down on crypto exchanges. The US Securities and Exchange Commission (SEC) recently sued Binance and Coinbase for allegedly violating US securities laws.