As the curtains raise on the crypto market’s latest act, the stars that graced its stage previously still smart from the public scrutinies and unfortunate legal predicaments incurred during an entertainment turned ghastly. Prominent faces likeTom Brady championed now-defunct crypto exchange FTX, fallen from grace after the deprivation of $8.7 billion from its clientele.
Brady, once thought to be sitting pretty on a $30 million endorsement deal, is now facing the flames as FTX investors rise against him, claiming to have been victims of celebrities being perceived as authentic endorsements of the exchange. A fate not exclusive to Brady alone, as celebrated names like Larry David and David Ortiz, among others, are being brought to justice, implying misrepresentation and treachery towards investor interests.
Ironically, the champions themselves have been left high and dry with Brady’s $30 million deal now of no value. Worse still, the transactions have the potential to open Brady to tax liabilities. Further stirring the pot is Sina Nader, former Head of Partnerships at FTX, who shed light on his role in roping in famous names to promote the fallen firm.
Avoidance isn’t an exclusive privilege either. Basketball Legend Shaquille O’Neal, who kept legal altercations at bay for some time, finally received lawsuit papers for promoting an unregistered cryptocurrency project. Meanwhile, Shark Tank’s Kevin O’Leary, tied to a similar fate as Brady, lost crypto-assets like Bitcoin, Ethereum, and Solana due to the exchange’s downfall.
Celebrities not associated with the FTX fiasco have been put under the regulatory radar, with cultural icon Kim Kardashian facing repercussions and charges from the U.S. Securities and Exchange Commission (SEC) for undisclosed promotions of crypto tokens. Such incidences beg the resolution of two-sided perspectives within the community. While the regulators aim to weed out potentially deceiving practices, some congress members have criticized the SEC for their “selective” enforcement, clamoring for a broader focus on harmful elements in the crypto space.
The crypto universe, it seems, is still in search of a balance between the allure of stardom and the practicalities of security regulations. Whether it will tilt towards the former’s glitz and glamour or the latter’s lawful scrutinies remains the quandary the world will look on to unravel.
Source: Cryptonews
