FTX Spent Over $1 Billion on Deals with Celebrities and Influencers
In court during Sam Bankman-Fried’s criminal trial, Nishad Singh, FTX’s former engineering director, revealed a list of deals that totaled over $1 billion given to celebrities and influencers. The deals included $135 million to rename the Miami entertainment complex as the FTX Arena, $28 million to basketball player Steph Curry, $14 million to businessman Kevin O’Leary, and undisclosed amounts to football quarterback Tom Brady, model Gisele Bundchen, and actor Larry David.
Singh mentioned a conversation he had with Bankman-Fried and Gary Wang regarding an investment in K5 Global, a company owned by Michael Kives and Bryan Baum. He asked that the deal be done using Bankman-Fried’s money instead of FTX’s funds.
Bankman-Fried’s Hasty Deal with Kives and Baum
Bankman-Fried quickly agreed to a deal worth $700 million with Kives and Baum, who are known as “super networkers,” according to previous reports by The Block.
Hot Take: FTX’s Lucrative Celebrity Sponsorships Draw Attention
The revelation of FTX spending over $1 billion on deals with celebrities and influencers raises questions about the company’s marketing strategy. While sponsorships with well-known figures can increase brand visibility and attract new users, it also highlights the significant financial resources allocated for such partnerships. Critics may argue that these funds could have been better used for other purposes within the cryptocurrency industry. Nevertheless, FTX’s approach demonstrates its commitment to expanding its reach through high-profile endorsements.
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