Last fall, over a dozen celebrities got caught up in the FTX cryptocurrency downfall, likely because they didn’t do their due diligence on the risky investment strategy. A-list names, including Tom Brady, Gisele Bündchen, and Stephen Curry are involved in a class action lawsuit for promoting what was essentially a Ponzi scheme.
The paid brand ambassadors are part of the complaint because of their contribution to the “offer and sale of unregistered securities in the form of yield-bearing accounts,” which was “designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.” But not every superstar who was approached with this financial opportunity took advantage of it because they decided to research the company before diving in headfirst.
Taylor Swift is being applauded for asking the right questions even though she was in the “late stages of negotiating a sponsorship deal” before the company’s fall. According to attorney Adam Moskowitz on The Block’s The Scoop podcast, Swift posed this crucial question during negotiations: “Can you tell me that these are not unregistered securities?” When that issue couldn’t be answered clearly, the deal for using NFT on her Eras Tour fell apart, according to Rolling Stone.
That one question probably saved her from losing a lot of money, and kept her clear of a major lawsuit. Swift’s curiosity and participation in her financial deals show just how business savvy she is. Other A-list celebrities didn’t necessarily do their homework and they are now paying the price.
Before you go, click here to see the most important celebrity lawsuits over the past 15 years.
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