Court documents reveal that FTX’s financial advisors are exploring the possibility of reversing payments made to athletes and celebrities prior to the company’s Chapter 11 filing, utilizing bankruptcy laws.
According to Bloomberg, the extensive list of endorsements underscores the importance of marketing and celebrity endorsements in the crypto world.
Legendary basketball player Shaquille O’Neal, commonly known as Shaq, received nearly $4.3 million from FTX, along with his affiliated company, Authentic Brands Group. Shaq was also named in the class action lawsuit.
FTX’s Chapter 11 Filing and the Battle Over Celebrity Endorsements
Tennis star Naomi Osaka received approximately $3.2 million from FTX affiliate West Realm Shires Services Inc., just two days before the exchange filed for bankruptcy. Similarly, basketball player Stephen Curry received $242,000 through his business, SC30 Inc.
The disclosures also include payments to other athletes, such as quarterback Trevor Lawrence, who received $500,000 in September 2022, and retired baseball player David Ortiz, who received around $600,000 for his charity that supports children’s heart surgeries.
Additional disclosures include approximately $1.2 million in payments to the NBA’s Washington Wizards and Monumental Sports and Entertainment, as well as approximately $484,000 to the Miami Heat, made by an FTX affiliate.
As FTX’s financial advisors pursue recovery, the crypto industry closely watches the outcome of this high-profile legal battle involving celebrity endorsements and the crypto platform’s bankruptcy.