The American singer-songwriter Taylor Swift avoided the lawsuit against FTX’s celebrity ambassadors by asking whether the securities she promoted were unregistered. Before getting onto a deal to endorse FTX Swift was firm that she wanted to know about the status of securities, whether they are registered or not.
The singer is also on the list of eleven celebrities who are trapped in the FTX lawsuit for being its ambassadors. Swift saved her face but not by a ten-year-long legal battle or by spending millions of dollars in a settlement outside the court, but by posing a single question.
She had said that she wanted to know about the legality before she balks the 100 million US dollars worth of sponsorship. FTX was on a sponsorship deal with Taylor Swift shortly before its collapse in November 2022.
FTX has on its name a class action filed in November 2022 in Miami. The lawsuit finds justice for the action of the paid brand ambassadors of the program who promoted the offer and sale of the unregistered securities that were in the form of yield-bearing accounts.
It will make action against the fraud measures that have been designed to take advantage of unsophisticated investors from all over the United States. These investors used mobile apps to make investments.
The lawsuit against FTX is led by a group of lawyers. One of them is Adam Moskovitz who now revealed the details about the pop singer Taylor Swift. The lawsuit, currently, is going on in court as a 5 million US dollar one.
Adam Moskovitz asked why would anyone promote cryptocurrency if there are chances of it being an unregistered security. He could not accept it.
Moskovitz continued that the list of influencers and celebrities who promoted it was long. Although his decision was to go after the giants of the field because he thinks it was not practical to go after all of them. He was talking on The Scoop podcast in The Block.
The lawyer thinks that celebrities are never short of options to promote services and to endorse products. And that the highly talented and established ones should think before acting. He added that it would never hurt them to conduct a background study of whatever they are promoting before signing the deal.
In fact, they would get hurt if they jumped into the deal without proper research. He asked everyone to learn from what has happened now and to be careful from here onwards at least about the project that will have their face on.
Celebrities are often approached by different projects to be their official ambassadors as they have an accepted image in society. People will actually buy something if a celebrity is backing it. It is the acceptance the celebrity has in society. They should be careful enough to not get scammed in fraudulent projects.
According to the lawyer, it was understood that whoever joined FTX automatically got registered into an interest account that is to be under a set of rules and regulations established by the Securities and Exchanges Commission of the United States of America.
Adam said that it was money that the people lent to them and the former s definitely going to get a return based on the actions of others.
Taylor Swift however has turned down the sponsorship deal despite getting a 100 million US dollar offer from FTX. But some reports say that she was considering a ticketing arrangement deal that was supposed to have NFTs for her Eras Tour.
The fumble down of the cryptocurrency exchange cum cryptocurrency hedge fund happened while the NFT ticket deal was on the table.
The other celebrities who are now stuck in the FTX lawsuit are NFL hero Tom Brady, NBA player Stephen Curry, Tennis star Naomi Osaka, NBA player Shaquille O’Neal aka Shaq, co-creator of the famous TV show Seinfield Larry David, and supermodel Gisele Bündchen.
In addition to FTX, Adam Moskovitz is also suing crypto exchanges such as Voyager and Binance, Voyager is sued for the promotion of a ponzi scheme. Binance is sued for the promotion of the crashed cryptocurrency exchange platform. The case is handled by the lawyers of the Boies Schiller Flexner and The Moskovitz Law Firm.
Taylor Wift has never been an artist who got blindfolded in any business deals. She comes from a business family ad knows how the market works.
Swift called out music streaming and subscription platforms such as Spotify and Apple Music. She condemned Apple Music for its decision not to pay artists during the three-month free trial program. The company which had this as part of its policy proceeded to reverse its policy just one day after Taylor Swift made her move.