“Such a complete failure” is how the new FTX CEO describes the $32 billion crypto company that recently filed bankruptcy. The newly appointed CEO slammed Sam Bankman-Fried for an absence of reliable data and financial safeguards.
Aside from multiple investigations, the former CEO of FTX, Bankman-Fried, must also deal with a lawsuit recently filed by several investors. Included in that lawsuit are numerous celebrities and influencers. Celebrities included in the case are Tom Brady and ex-wife Gisele Bunchden, Steph Curry, Shaquille Oneal, Larry David, and David Ortiz. While these celebrities have also lost large chunks of money, their role as endorsers lands them in the middle of a lawsuit. The lawyer behind the class action lawsuit claims the “massive Ponzi scheme” would not be possible without the help of celebrities and influencers. Finance influencers who are also a part of the lawsuit have been seen on social media apologizing to fans, but many celebrity endorsers have not made official statements.
First, celebrities and influencers were paid to endorse FTX. The amount may be unknown, but stars like Kim Kardashian have reportedly been paid millions to endorse crypto. It’s safe to say celebrities will be more cautious before accepting every check offered to them in exchange for a stamp of celeb approval.
Second, you and any other investor should consider the source when seeking advice on significant investments. U.S. News made a common sense list of 5 people you should not listen to for investing advice.
Here’s the list
- Random person at a party
- Your coworker
- An in-law
- Rideshare driver
- Talking Heads on TV
Some legit influencers and celebrities have a background in finance and have made good investment moves in the past, but again, do your research.
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