Field Level Media
23 Nov 2022, 05:10 GMT+10
Tom Brady and Stephen Curry are among the celebrities being investigated in Texas for their link to bankrupt cryptocurrency firm FTX, multiple outlets reported Tuesday.
The investigation focuses on whether celebrity endorsements could have violated state securities laws, The Texas Tribune reported.
"Anyone who renders investment advice in Texas typically needs to be registered and they typically have to truthfully disclose all known material facts," Joe Rotunda, the enforcement director of the Texas State Securities Board, told the publication. "In Texas, there is not a different system of justice or regulation for people who are celebrities."
The board is reviewing whether the FTX yield-bearing cryptocurrency accounts gave Texas residents access to unregistered securities.
Brady, the Tampa Bay Buccaneers' quarterback, Golden State Warriors sharpshooter Curry and other athletes were named as defendants in a class-action lawsuit filed last week in federal court in Florida. The suit alleges the athletes appeared in advertisements for FTX that were full of "misrepresentations and omissions" and should be held liable for losses.
The suit also names FTX's former CEO, Sam Bankman-Fried.
Rotunda told The Texas Tribune that his group will focus on what promoters like Brady and Curry disclosed, the compensation they received and the act of scripting and filming their promotions.
"It's important from a securities regulation standpoint, and from a bankruptcy standpoint, to determine the ways FTX was encouraging clients and Texans to use FTX and invest with FTX," he said.
In October, influencer Kim Kardashian settled with the federal Securities and Exchange Commission, agreeing to pay $1.26 million to the agency for failing to disclose that she received $250,000 for promoting a product of crypto company EtherheumMax.
--Field Level MediaGet a daily dose of Orlando Echo news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Orlando Echo.
More InformationWASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...
Washington DC [US], July 4 (ANI): Russia President Vladimir Putin on Thursday held a telephonic conversation with US President Donald...
The US president has vowed to stop Zohran Mamdani from destroying the city US President Donald Trump has accused Democratic mayoral...
Florida [US], July 2 (ANI): Spanish giants Real Madrid and German club Borussia Dortmund on Wednesday became the last two teams to...
Washington, DC [US], July 2 (ANI): Katy Perry and Orlando Bloom have called off their relationship. Amid the split, they both 'want...