Cryptocurrency exchange FTX is reportedly attempting to retrieve large sums of money paid to former basketball player Shaquille O’Neal and tennis star Naomi Osaka, according to reports. The company is said to be aiming to get back millions of dollars it paid as part of endorsement deals with the famous athletes. This move by FTX comes as they face increasing scrutiny and legal challenges, with authorities probing into potential misleading and fraudulent activities in the industry. FTX’s efforts to retrieve the money could have significant implications for both O’Neal and Osaka, as well as the wider cryptocurrency community.
[Title 1: FTX Seeks to Retrieve Payments Made to Professional Athletes and Teams]
The now bankrupt cryptocurrency exchange, FTX, is reportedly attempting to recover the money it paid to professional athletes and teams for their promotional services. Despite its bankruptcy status, FTX aims to restart its operations in the future. Notable figures like Shaquille O’Neal and Naomi Osaka are said to be among those whom FTX seeks to retrieve payments from. However, the involvement of Tom Brady has not been mentioned thus far.
During its peak in 2021, FTX experienced significant success, striking major deals and securing naming rights for arenas. The exchange was also endorsed by numerous celebrities and professional athletes, requiring FTX to pay for their promotional activities.
Some of the most prominent names associated with FTX’s promotions include Shaquille O’Neal, Steph Curry, and Naomi Osaka. Interestingly, Tom Brady took a different approach by acquiring an equity stake in the exchange alongside his former wife.
The sudden collapse of FTX in late 2022 had far-reaching consequences, not only for the company and its employees but also for the celebrities involved in its promotions. Some of these celebrities even found themselves facing class-action lawsuits.
Under the leadership of CEO John J. Ray III, FTX’s new executives have implemented various strategies to recover the funds owed to the exchange’s numerous creditors. Meanwhile, the founder of FTX, SBF, who is believed to be the main catalyst behind the collapse, awaits his trial.
According to a Bloomberg report, FTX Group is currently seeking to reclaim the funds it paid to O’Neal, Osaka, and others for their promotional services over the years. The company’s financial advisors are reviewing whether these payments can be recovered under Chapter 11. Court documents describe these payments as “prepayments related to advertising or sponsorship deals.”
The report further reveals that FTX had disbursed approximately $4.9 million to Major League Baseball (MLB) for umpires to wear patches bearing the FTX logo. Additionally, the exchange had entered into partnership agreements with the Formula 1 racing team Mercedes-AMG Petronas, involving payments amounting to at least $12.2 million. Moreover, FTX disclosed payments of $3.4 million to the NBA’s Golden State Warriors and almost $242,000 to Stephen Curry’s business, SC30 Inc.
[Title 2: FTX’s Attempt to Recover Payments Made to Shaq and Naomi Osaka]
The bankrupt crypto exchange FTX, which plans to relaunch its operations in the future, is making efforts to retrieve the payments it made to influential athletes and teams who endorsed the platform. Among the notable figures, Shaquille O’Neal and Naomi Osaka are reportedly included, although there is no mention yet of Tom Brady’s involvement.
FTX experienced tremendous success in 2021, pursuing major deals and securing naming rights for arenas, while also seeking celebrity endorsements from various athletes. However, such promotional activities required significant financial investment from the exchange.
The list of well-known individuals associated with FTX’s promotions includes Shaquille O’Neal, Steph Curry, and Naomi Osaka. Interestingly, Tom Brady opted for a different approach by becoming an equity stakeholder in FTX, alongside his former wife.
The sudden collapse of FTX in late 2022 had severe consequences for the company, its employees, and the celebrities involved in its promotions. Numerous athletes found themselves entangled in class-action lawsuits as a result.
Under the leadership of CEO John J. Ray III, FTX’s new executives have launched several initiatives to recover the funds owed to their extensive list of creditors. Meanwhile, the founder of FTX, SBF, who is widely believed to be responsible for the collapse, awaits his trial.
According to Bloomberg, FTX Group is now seeking to reclaim the payments made to O’Neal, Osaka, and others for their promotional services. The company’s financial advisors are working to determine if these payments can be recovered within the framework of Chapter 11. In court documents, these payments were described as “prepayments related to advertising or sponsorship deals.”
Bloomberg’s report also reveals some staggering figures, with FTX having disbursed around $4.9 million to Major League Baseball (MLB) for umpires to wear patches bearing the FTX logo. Additionally, the exchange had entered into partnership agreements with the Formula 1 racing team Mercedes-AMG Petronas, involving payments totaling at least $12.2 million. Furthermore, FTX disclosed payments of $3.4 million to the NBA’s Golden State Warriors and almost $242,000 to Stephen Curry’s business, SC30 Inc.