Taylor Swift’s $100M FTX Deal: Why Did SBF Pull Out?

New leaks suggest an unforeseen scenario where Sam Bankman-Fried was the one to pull the plug.

Taylor Swift shocked at Sam Bankman Fried.
Created by Kornelija Poderskytė from DailyCoin
  • Multi-platinum pop diva Taylor Swift’s crypto venture via FTX didn’t happen.
  • In April, a puff piece in New York Magazine praised Swift’s due diligence.
  • Anonymous witnesses report the other side of the story to CNBC News.

Deemed “the one celeb too smart to fall for the fallen FTX” by NYMAG Intelligencer back in April, fresh evidence suggests that Taylor Swift was nowhere near the proclaimed exception. On the contrary, the American artist’s executive team was shocked to find out FTX boss Samuel Bankman-Fried backed out of the $100 million deal.

This comes after high-class attorneys defended Swift and emphasized her “due diligence efforts,” highlighting the interrogative approach in the iconic singer’s conversation with FTX’s representative. 

Indeed, Swift asked how the cryptocurrency assets sold on the FTX crypto platform differ from unregistered securities. Nevertheless, after half a year of intense negotiations, Swift’s executives proceeded with the deal.

SBF Shows Swift the Other Side of the Door

In a recent interview for CNBC News, a person familiar with the matter described the moment Sam Bankman-Fried was convinced by his colleagues to drop the $100 million deal, even though the signed contract was in SBF’s inbox for at least a few weeks.

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Besides peer pressure, another factor in this decision for SBF could have been the boiling legal troubles – FTX filed for bankruptcy protection in November 2022. Soon after, SBF was charged with fraud, market manipulation, and bribery, among other charges. 

In January 2023, the Securities and Exchange Commission (SEC) released an injunction prohibiting the once-successful crypto mogul from “participating in the issuance, purchase, offer, or sale of any securities, except for his own personal account.”

On The Flipside

  • If the $100 million deal had been signed, it’s unlikely that Taylor Swift would actually promote the FTX franchise – the negotiations fizzled out just a month before its downfall.

Why This Matters

Celebrity sponsorship deals contribute towards retail crypto adoption in the long run.

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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
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.