Investigation Into Tom Brady and Steph Curry Over FTX Promotion Launched

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Texas Launches Investigation Into Tom Brady and Steph Curry Over FTX Promotion

The fallout from the failed crypto exchange FTX continues, and this time the Texas State Securities Board is involved. The multi-billion dollar business collapsed into bankruptcy this month, causing millions of its clients to lose money.

The Texas regulator is scrutinizing payments received by NFL legend Tom Brady and NBA superstar Steph Curry from FTX for endorsements, along with what disclosures were made and how accessible they were to retail investors.

Bloomberg News reports "that stars including Curry, Brady, and model Gisele Bundchen were named as defendants in a class action lawsuit over whether Sam Bankman-Fried's FTX targeted "unsophisticated investors" using star endorsers."

And some believe there is a legitimate case to be made.

“If a celebrity says, ‘I’ve looked into this investment and it’s terrific and you ought to put your money into it’ -- and if they haven’t looked into it, that could be a misrepresentation,” said John Olson, a retired securities lawyer and former Georgetown University law professor.

Last week Texas Gov. Greg Abbott lashed out at Democrats who received donations from bankrupt billionaire Sam Bankman-Fried, claiming it was at the expense of innocent customers of FTX, the business founded by Bankman-Fried.

One of those who received a significant contribution from Bankman-Fried was Abbott's Democrat opponent in the Texas gubernatorial race, Beto O'Rourke. Bankman-Fried donated $1 million to Beto's failed campaign for Texas Governor, making him Beto's fourth largest donor.

Abbott said that Beto should give back the "tainted money" that he received.

This guy gave a million dollars to Beto. This Madoff-Style evaporation of customer's money should be a crime. Candidates who received this tainted money should return it so that innocent customers of FTX can get some of their money back." Texas Gov. Greg Abbott