Stars like Tom Brady and Stephen Curry are in legal trouble following the crypto crash. One of the most well-known exchanges, FTX, recently announced that it would file for bankruptcy. Additionally, security officials are currently closely monitoring the organization.
Sam Bankman, a recent billionaire from Silicon Valley and a former CEO, revealed the downturn a few days ago. After the business declared bankruptcy, he left his position.
Everything supposedly fell apart due to abrupt crypto market crashes and poor handling of investor money. The US Securities and Exchange Commission (SEC) and state regulatory agencies like the Texas State Securities Board have launched an investigation into the unexpected crash, even as the corporation makes every effort to stand on its own two feet once more.
Stephen Curry and Tom Brady find themselves in legal trouble
Celebrities who endorsed the platform are also being investigated, in addition to the firm associates, board members, and administrators. Sports stars like Stephen Curry and Tom Brady are high on the priority list.
The Buccaneers quarterback reportedly invested in the business with his ex-wife Gisele Bündchen last year. Particularly, Tom Brady had hailed the platform and its prospects on a number of times.
Furthermore, the appearance of a young CEO, Sam Bankman, drew a wide audience that was heavily invested in this turbulent market. However, things did not proceed as planned. “We are taking a close look at them,” said Joe Rotunda, director of enforcement at the Texas State Securities Board, in an interview with Bloomberg News.
They do not, however, fall under the radar right away.
“If a celebrity says, ‘I’ve looked into this investment, and it’s terrific and you ought to put your money into it — and if they haven’t looked into it, that could be a misrepresentation,” a retired securities lawyer said.