FTX Advisers Investigate Payments to Athletes and Sports Organizations
The financial advisers hired by the new management of FTX have conducted a review of the payments made to professional athletes, sports clubs, and associations that promoted the cryptocurrency exchange before its collapse. Court documents suggest that the experts are looking into the possibility of reversing these payments under the rules that apply to transactions made prior to the company’s bankruptcy filing. Among the individuals who received payments were former NBA player Shaquille O’Neal and tennis star Naomi Osaka. These payments were part of advertising and sponsorship deals with organizations such as Major League Baseball and NBA teams. The review revealed that significant amounts of money were transferred to MLB, Formula 1 racing team Mercedes-AMG Petronas, and the NBA’s Golden State Warriors.
Some Payments Were Made Shortly Before Bankruptcy Filing
The court documents indicate that certain payments were made just days before FTX filed for bankruptcy. For example, an FTX affiliate company paid $2.5 million to a subsidiary of Authentic Brands Group associated with Shaquille O’Neal, while Naomi Osaka received $2 million in early November, shortly before the bankruptcy filing. Other athletes and sports teams mentioned in the documents include Trevor Lawrence, David Ortiz, and the Washington Wizards and Miami Heat. These payments were made approximately a month prior to FTX’s Chapter 11 filing. The new management of FTX has filed lawsuits against a venture capital firm that allegedly connected the company’s founder, Sam Bankman-Fried, to NBA stars and other celebrities. The athletes and teams deny responsibility for the losses suffered by investors and are facing legal action.
Hot Take
The review of payments made by FTX to athletes and sports organizations reveals the extent of the company’s efforts to promote its cryptocurrency exchange. With millions of dollars transferred to high-profile individuals and teams, it is clear that FTX was willing to invest heavily in marketing and sponsorship deals. However, the timing of some of these payments, just days before the bankruptcy filing, raises questions about the company’s financial situation and the ethics of these transactions. The lawsuits filed by the new management of FTX indicate their determination to recover funds and hold those involved accountable. This case serves as a reminder of the risks associated with investing in cryptocurrency exchanges and the importance of due diligence when engaging in such transactions.
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