The financial advisors of FTX attempt to recoup millions of dollars paid to Shaquille O’Neal, Naomi Osaka, Stephen Curry, and other stars. By Coingape Staff 2 hours ago Updated 2 hours ago
In attempts at a fresh start, FTX’s new set of financial advisors will attempt to recover millions paid to Shaquille O’Neal, Stephen Curry, and Naomi Osaka, along with other athletes who endorsed the exchange before it filed for bankruptcy.
The advisors disclosed in court papers that it is possible to reverse some payments made by the exchange before filing for Chapter 11 according to the Bankruptcy laws.
Star Play
Sam Bankman-Fried understood the importance of good marketing and endorsement. The tall list of players, actors, and celebrities only confirms the thought.
FTX entered a sponsorship deal with the legendary Basketball player Shaquille O’Neal, also known as Shaq. According to the documents, FTX paid nearly $4.3 million to Shaq and his affiliated company, Authentic Brands Group. Shaq was also named in the FTX class action lawsuit.
Another athlete on FTX’s list is the Tennis star Naomi Osaka. FTX affiliate West Realm Shires Services Inc. paid $2 million to Osaka just two days before SBF’s FTX filed for bankruptcy. The estimated amount paid to Osaka stands at around $3.2 Million.
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Stephen Curry is another basketball player on the list of celebrities who endorsed the infamous crypto exchange and got paid before its bankruptcy. The exchange deposited $242,000 into Curry’s business, SC30 Inc.
The documents also named baseball star Trevor Lawrence for receiving payments worth $500,000 in September 2022. A payment of $600,000 was sent to retired Baseball player David Ortiz and his charity that funds heart surgeries for children.
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The FTX Major League
Sam Bankman-Fried tried to leverage the popularity of star athletes and sporting leagues to elevate his empire’s profile. The major leagues consist of the United States’ Major League Baseball (MLB) and National Basketball Association (NBA) teams.
The Bloomberg report reveals SBF led exchange paid several NBA Teams for sponsorship and endorsements. Nearly $3.4 million was transferred to the Golden State Warriors. Another payment of $1.2 Million to the Washington Wizards and its owner Monumental Sports and Entertainment. Miami Heats is the third NBA team on the list, receiving $484,000.
The fallen exchange also tried to sponsor the MLB and paid the league around $4.9 million. The deal revolved around MLB umpires wearing patches that featured the FTX logo.
SBF also entered into an agreement of $12.2 Million with the former champion Formula 1 Mercedes-AMG Petronas racing team. Shortly before the firm filed for bankruptcy, Mercedes announced severing ties with FTX.
In December 2022, many endorsers volunteered to return what FTX paid them in efforts to save the customers and other creditors hit by the brazen actions of Sam Bankman-Fried led FTX.
John Ray III, the new CEO of FTX, claimed during the Chapter 11 filing that the company lacked proper financial information as the records were incomplete. The lack of data makes it difficult to know if any league teams or athletes repaid or offset the amount paid by the SBF led exchange.
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