FTX Looks to Recover $18 Million in Promotional Payments
It has been almost a year since FTX, the bankrupt crypto exchange, filed for bankruptcy. The exchange is now seeking to recover millions of dollars in promotional payments made to celebrities and organizations. During its peak in 2021, FTX engaged in extensive marketing campaigns, including partnerships with celebrities like Naomi Osaka and Shaquille O’Neal. These deals involved significant prepayments, which FTX now wants to claw back.
In a filing with the court on August 31, FTX expressed its intention to recover approximately $18 million in promotional payments made to celebrities, sports teams, and arenas. The largest prepayment being sought is a $3.4 million payment made for the naming rights of the Miami Heat Arena. Other notable payments include those made to Kevin O’Leary, GameStop, Fortune Media Inc., and the Coachella Music Festival.
FTX’s Possible Crypto Dump
There are rumors that FTX may be preparing to sell its substantial crypto holdings. A decision is expected on September 13 regarding FTX’s request to sell its crypto stash. If granted, FTX could offload its $3.4 billion worth of cryptocurrencies on the market. The exchange has appointed Galaxy Digital to handle the sale. As the decision approaches, the anticipation of FTX selling its crypto holdings has already caused a decline in the value of coins like Solana.
FTX holds a significant amount of Bitcoin, Ethereum, Dogecoin, Polygon, Aptos, and its native token, FTT Token. However, it is unlikely that FTX will be able to sell all of these tokens at once, as some are locked under vesting and the court may impose limits on the amount that can be sold at a time.
Hot Take: FTX’s Attempt to Recover Promotional Payments Raises Questions
FTX’s move to recover promotional payments has generated curiosity and speculation. While the exchange’s bankruptcy filing has already caused significant repercussions, pursuing celebrities and organizations for repayment adds another layer of complexity. It raises questions about the nature of these promotional deals and the risks involved. Additionally, FTX’s rumored plan to sell its crypto holdings could have a considerable impact on the market. As the decision date approaches, all eyes will be on FTX to see how this ongoing saga unfolds and what implications it may have for the crypto industry as a whole.
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