FTX Aims to Recoup Millions Paid to Shaq and Other Prominent Celebrity Advocates

FTX Aims to Recoup Millions Paid to Shaq and Other Prominent Celebrity Advocates


FTX Advisers Investigating Recovery of Payments to Sports Stars for Partnerships and Endorsements

FTX’s financial advisers, Alvarez & Marsal, are conducting an investigation into the likelihood of recovering funds that the exchange paid to celebrity athletes, including Naomi Osaka and Shaquille O’Neal, for partnerships and endorsements. The aim is to use these recovered funds to offset states made by FTX’s customers and creditors following its bankruptcy filing in November 2022.

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In court filings, FTX disclosed that it reviewed payments made to individual athletes, Major League Baseball (MLB), and Formula 1 racing teams to determine if they may be reversed under Chapter 11 regulations. FTX had used its association with sports stars and leagues to strengthen its reputation, paying $4.9 Million to MLB and $12.2 Million to Formula 1 before filing for bankruptcy.

The advisers believe that a portion of the Formula 1 payment may be recovered through Chapter 11 regulations. Other athletes who received payments from FTX include Trevor Lawrence and David Ortiz.

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Hot Take:

FTX’s move to investigate the recovery of funds paid to sports stars for partnerships and endorsements outlines the complexities faced when a cryptocurrency exchange faces financial turmoil. Although while such partnerships can bring visibility and legitimacy to the platform, they can likewise complicate matters during bankruptcy proceedings. This case serves as a reminder that enterprises in the cryptocurrency space must carefully manage their financials and contractual obligations to protect all parties involved.

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Noah Rypton stands as an enigmatic fusion of crypto analyst, relentless researcher, and editorial virtuoso, illuminating the uncharted corridors of cryptocurrency. His odyssey through the crypto realms reveals intricate tapestries of digital assets, resonating harmoniously with seekers of all stripes. Noah’s ability to unfurl the labyrinthine nuances of crypto intricacies is elegantly interwoven with his editorial finesse, transmuting complexity into an engaging symphony of comprehension.

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