FTX Advisors Seek Refunds on Celebrity Endorsements and Sponsorships

FTX advisors are desperately gathering funds from every means possible, with their latest target being refunds on celebrity endorsements.

Sam Bankman showing number one foam finger in court.
Created by Kornelija Poderskytė from DailyCoin
  • FTX advisors are working overtime to repay debtors and users. 
  • In a court filing, the exchange is going after celebrity endorsements, seeking a potential refund. 
  • While it is uncertain if FTX will succeed in its hunt, the exchange has historically spent a hefty fund on endorsements.

FTX’s spectacular downfall has become an alarming beacon of caution and intrigue, leaving behind unresolved financial chaos.

With the SEC breathing down the exchange’s neck and its once-heralded star boy behind bars, advisors are working overtime to collect loose change as they eye a comeback. Their latest target? Celebrity endorsements and sponsorship deals. 

FTX Advisors’ Quest for Funds

The latest court filing from FTX reveals that its group advisors are probing if they can claw back the millions of dollars paid in celebrity endorsements and sponsorship deals before the exchange caught fire in November 2022

Sponsored

The now-defunct firm is targeting the bags they paid numerous A-list athletes and sports teams to promote FTX, including Shaquille O’Neal, tennis star Naomi Osaka, and the Mercedes Racing Team. 

While it is uncertain whether FTX will succeed in its hunt, the exchange has historically spent a hefty fund on endorsements akin to its political lobbying efforts. Sam Bankman-Fried, the company’s former CEO, elevated his empire’s status by using the popularity of celebrity athletes and teams from the NBA, Major League Baseball, and Formula 1. 

In the court documents, FTX reasons that many of its endorsement transfers were ‘prepayments’ and warns that the financial information may not be completely accurate because the company lacked trustworthy books and records.

Sponsored

FTX further argued that its recovery of transfers could be possible because athletes, teams, and parties withdrew or offset their deposits before the exchange filed for bankruptcy. Considering the long list of companies and parties associated with FTX, advisors are looking at a potential payday. 

Who Is in Bed with FTX?  

Although FTX has cautioned that much of its information is inaccurate, it notes that the deposits it ultimately recovers could be substantially large. 

Here’s a brief list of FTX prepayments the exchange is eyeing and believes could be undone.

  • $5 million MLB deal for FTX logo on umpire attire.
  • $12 million partnership with Formula-1 team Mercedes-AMG Petronas.
  • $3 million NBA’s Golden State Warriors-FTX endorsement.
  • $1.2 million NBA’s Washington Wizards sponsorship deal. 
  • $500,000 Miami Heat entertainment partnership.
  • $240,000 payment to NBA star Stephen Curry.
  • $4 million to a company linked with Shaquille O’Neal.
  • $3.2 million to tennis star Naomi Osaka.
  • Over $1 million on other athlete endorsements.

While the parties involved have yet to respond to FTX’s request, many celebrity athletes have already distanced themselves from the defunct exchange and claimed they’ve done nothing wrong. 

On the Flipside

Why This Matters

Users and debtors have yet to receive reimbursements from FTX. The advisors’ quest to recover funds could alleviate tensions; however, it depends on how the opposing party responds to their requests. 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.