In what many would call a dramatic twist to the saga of the now-defunct cryptocurrency exchange FTX, revelations suggest that it was indeed FTX that pulled the plug on a sprouting deal with powerhouse musician, Taylor Swift. Original sources cited by The New York Times, reported that Swift had inked a tour sponsorship agreement with FTX, potentially worth a whopping $100 million after half a year of negotiations. However, it seems the former FTX CEO Sam Bankman-Fried routed a different course leaving the Swift team rather discontented.
In the original narrative, Swift was seen as the one pulling out of the deal, following due diligence on FTX, which leaned towards their cryptocurrencies potentially being unregistered securities. These reports owed their arguments to a lawsuit involving high-profile endorsers of FTX.
As news of the potential partnership had surfaced last year, FTX was grappling with several challenges, including a liquidity crisis and an inability to fulfill customer deposits. Such turmoil eventually led to the exchange’s closure and set off a chain of allegations. Further investigations revealed that Bankman-Fried had stepped out of the firm and faced charges insinuating misuse of customer funds for his trading firm, Alameda Research, and personal investments. Currently, FTX struggles through bankruptcy proceedings, aiming to repay its customers and creditors.
In the wake of the financial crisis, celebrities such as Tom Brady and Larry David who endorsed the exchange were caught up in a class action lawsuit. These celebrities were accused of misleading customers and engaging in deceptive practices in the promotion of FTX digital currency assets.
Despite the rocky road, FTX under new leadership has recovered about $7 billion in liquid assets, demonstrating ‘substantial progress’ in the security of its operations. Although the exchange was $8.7 billion in debt during its bankruptcy last year, it appears that it is actively seeking every possible method to recover its misappropriated funds. Most prominently, FTX has taken its founder to court demanding he return the $700 million he transferred to K5 entities.
On one side of the coin, it’s applause-worthy to witness FTX’s efforts in regaining its stature, yet on the other side, the unresolved issues raise the stark question of whether blockchain technology’s promise of trust and transparency is indeed materializing?
Source: Cryptonews
