Bankrupt cryptocurrency exchange FTX is currently investigating the possibility of reclaiming millions of dollars that were paid to celebrity athletes and sports teams as part of their marketing efforts prior to filing for bankruptcy in November. In a court filing released on August 31, FTX’s financial advisors presented a detailed list of high-profile individuals and businesses that received payments, aiming to determine if these payments can be reversed under the rules governing bankrupt companies.
The extensive list includes substantial sums such as $750,000 paid to former basketball player Shaquille O’Neal, over $300,000 paid to tennis pro Naomi Osaka, more than $270,000 paid to former baseball star David Ortiz, and over $200,000 paid to American football quarterback Trevor Lawrence. Additionally, the list includes nearly $420,000 paid to the Golden State Warriors, a professional basketball team, and over $250,000 in various payments to the Miami Heat.
Although it is uncertain how much FTX will actually be able to recover from these payments, the court filing issued a warning that the final amount may significantly differ from the reported figures. It is important to note that several of the celebrities mentioned in the filing have already faced class-action lawsuits from FTX users, who are seeking compensation for their losses.
O’Neal, Osaka, and the Golden State Warriors have been sued by groups of FTX customers who claim that these celebrities promoted the exchange, which they argue was involved in selling unregistered securities. In response to these legal challenges, FTX has initiated a series of lawsuits in an attempt to recover funds. The most recent case, filed on September 9, targets LayerZero Labs, a cross-chain protocol, as FTX seeks to retrieve $21 million that was allegedly unlawfully withdrawn prior to the exchange’s bankruptcy.
Furthermore, in July, FTX sued its co-founder, Sam Bankman-Fried, and other former top executives in pursuit of recovering over $1 billion in funds that were supposedly misappropriated. These legal actions illustrate FTX’s determination to regain as much capital as possible and emphasize the ongoing complexity surrounding the bankruptcy proceedings.
It remains to be seen how successful FTX will be in reclaiming the payments made to celebrities and sports teams. However, by thoroughly scrutinizing their previous marketing efforts and exploring potential avenues to reverse these payments, the bankrupt exchange aims to safeguard its remaining assets and mitigate any further financial losses.
In conclusion, bankrupt crypto exchange FTX is actively investigating the possibility of recovering millions of dollars paid to celebrity athletes and sports teams as part of their marketing campaigns. Through detailed examination and legal action, FTX hopes to reverse these payments and minimize its losses in the challenging aftermath of its bankruptcy filing.
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