After months of talks, Taylor Swift signed and agreed to a sponsorship contract with collapsed crypto exchange FTX. However, management at FTX chose not to go through with the arrangement, according to a person knowledgeable with the subject who spoke to CNBC about the situation.
Due to pending federal and bankruptcy processes, the source requested anonymity. The Financial Times was the first to disclose the existence of an FTX-Swift collaboration.
The Failed FTX-Swift Deal
The nature of the deal, which The New York Times reported on Thursday, July 6, goes against what the public has been told about the failed FTX-Swift deal. A class action lawyer has publicly praised Swift for doing her research and revealed that the singer-songwriter had inquired as to why the listed assets on the exchange were not deemed unregistered securities.
However, one person familiar with the situation informed CNBC that Swift did, in fact, accept the offer.
The insider said that the signed agreement was forwarded to FTX founder Sam Bankman-Fried's inbox, where it sat unopened for a few weeks until a group of FTX officials pushed Bankman-Fried to back out of the purported $100 million contract.
According to The New York Times, three more persons with knowledge of the situation said that after six months of discussions, Swift's team signed the contract with FTX, but Bankman-Fried finally pulled the plug.
Bankman-Fried's Trial
As of November 2022, FTX is operating under Chapter 11 bankruptcy protection. Bankman-Fried is being investigated on various federal accusations, including fraud and breaches of campaign finance laws.
In March, TechTimes reported that Bankman-Fried pled not guilty to additional charges brought against him in relation to the collapse of FTX and hedge fund Alameda Research.
Meanwhile, three more FTX executives -- Gary Wang, Caroline Ellison, and Nishad Singh -- have all pled guilty to federal crimes and are now helping the government prosecute Bankman-Fried.
Lies Covered Up by Execs
The last month's FTX team analysis revealed that the failed exchange owes its customers $8.7 billion after mishandling and pooling user money. The report alleges senior authorities started covering up the issue in August 2022.
FTX.com reportedly owes its customers $6.4 billion "in the form of fiat currency and stablecoin that had been misappropriated." Investigators have recovered $7 billion in liquid assets and expect more.
CEO John J. Ray III, who is trying to reclaim creditors' cash, says the FTX Group's promise to be the customer-focused digital age leader was a lie.
After months of investigation and forensic auditing, CoinDesk discovered that firm management and at least one senior lawyer willfully misappropriated customer funds. That lawyer lied to banks and auditors, produced phony paperwork, and moved the FTX Group from the US to Hong Kong and the Bahamas.
