Tom Brady probed over FTX endorsements

The investigation is focused on whether FTX had breached US securities laws but there’s more to the story.

The Texas State Securities Board (TSSB) is probing payments celebrities received from FTX US for endorsing the failed crypto exchange.

While not the focus of TSSB’s investigation, Tom Brady, Stephen Curry, and others, fall under its general scope.

The Texan regulator is “taking a close look” not only at the payments from FTX US, but also at the related disclosures made, as well as their accessibility to retail investors.

Bloomberg’s report outlined these payments are not the highest priority of the regulator’s investigation into the FTX’s implosion, but still fall under its larger scope.

While TSSB’s investigation is not on the same level it could have been if it were conducted by the SEC, this still has the potential to get ugly for either the Buccaneers’ quarterback Tom Brady, or Golden State Warriors’ Stephen Curry, or anyone who is under the microscope currently, for that matter.

Bloomberg’s report included statements from director of enforcement at TSSB, Joe Rotunda. According to Rotunda, the investigation is also focusing on whether FTX has violated regulations in US securities laws by promoting yield-bearing crypto accounts, for example.

This is not the first time that celebrities have been probed for their crypto endorsements. Just last month Kim Kardashian settled for paying $1.26m for promoting a crypto product that the US Securities and Exchange Commission (SEC) found to be misleading.

This is also not the first instance of being under fire over supporting crypto for Brady. He, including multiple other celebrities, are subjects in a class action lawsuit against FTX and celebrities that have directly or indirectly supported or endorsed the failed crypto exchange.

Stephen Curry appeared in an FTX commercial earlier this year, later becoming an official ambassador for the crypto exchange, just a couple months before its collapse, so his involvement on this is also on multiple levels.

Brady’s situation isn’t any fun, either. Not a month ago his divorce with Gisele Bündchen – who is also included in the class action lawsuit, by the way – was finalized. Many have been outspoken about this season’s start being one of the worst for Brady, contesting his 2002 85.7 passer rating, which had marked a career-low for him.

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Written by Kyamil Nasuf

Reporter

Kyamil is a big tech fan, who loves hummus on everything and has enjoyed writing from a young age. He's had experience in writing anything from essays, through personal art, to news pieces and more serious tech analysis. In recent years he’s found fintech and gambling collide with all his interests, so he truly is a great fit to our team.

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