- Tom Brady and Steph Curry endorsements for FTX probed by Texas regulator.
- Anyone who gives financial advice in Texas normally has to be registered.
- it is presently unknown if any well-known Texan will be probed.
Texas is looking into whether or not celebrities who supported the now-bankrupt cryptocurrency company FTX broke any state securities laws.
The Texas State Securities Board began investigating FTX’s operations last month. This was meant to see if the exchange was giving Texans access to unregistered securities through its yield-bearing crypto accounts. The board has vastly expanded its investigation after the company’s demise on November 11 in order to look into the effects of this massive bankruptcy.
Included in this expanded probe are celebrity endorsements of FTX by athletes like Steph Curry of the Golden State Warriors. Tom Brady of the Tampa Bay Buccaneers, as originally reported by Bloomberg News and corroborated by The Texas Tribune is also a subject of the probe.
Additionally, a class-action lawsuit accusing Curry, Brady, and other celebrities, mostly well-known athletes, was launched in Florida. This accuses the above-named of using their endorsements to defraud “unsophisticated investors”. Sam Bankman-Fried, the former CEO of FTX, is also mentioned.
According to Joe Rotunda, the state board’s enforcement director, “Anyone who gives financial advice in Texas normally has to be registered. Additionally, they typically have to honestly disclose all known relevant information.” In Texas, celebrities do not have access to a special justice or regulatory system.
Although Rotunda stated his staff is still building a list of pertinent parties based on recent court filings by FTX’s current CEO John J. Ray III and the class-action lawsuit, it is presently unknown if any well-known Texan will be probed.
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