Taylor Swift was reportedly in talks for a partnership with FTX, a now-collapsed cryptocurrency exchange, as she was preparing her Eras Tour in the fall of 2021. FTX’s owner, Sam Bankman-Fried, has since been charged with defrauding investors, but at the time was bringing celebrities like Shaq, Tom Brady, Larry David, Steph Curry, and more on board (all of whom are now facing a lawsuit).
According to a new interview that lawyer Adam Moskowitz did with The Scoop podcast, he spoke to the fact that most celebrity endorsers didn’t research much into the company — except Swift. In a previous report from the Financial Times, Swift’s $100 million tour deal would have included selling tickets as NFTs.
Moskowitz is now the pursuing the nearly $5 billion class-action lawsuit on behalf of clients who lost money upon FTX’s bankruptcy last year.
“The one person I found that did that was Taylor Swift,” Moskowitz said. “In our discovery, Taylor Swift actually asked them, ‘Can you tell me that these are not unregistered securities?'”
And this is exactly where the company’s downfall came from. Per Business Insider, securities are considered a “tradeable asset” and must be registered with the SEC. Yet, FTX’s cryptocurrency, FTT, despite being a security that was “sold as an investment contact,” was not properly registered.
As today’s news of Swift’s passing on the FTX deal broke, her father, Scott, also became a trending topic on social media, as some cited his work at Merrill Lynch for possibly advising her on the deal.
View some reactions below.
It’s against US law to promote unregistered securities.
Taylor Swift was the only major celebrity who did due diligence asking FTX: “Can you tell me that these [crypto tokens] are not unregistered securities?” FTX could not, so she did not promote & thus is not sued. Others are. https://t.co/w9XOfRHjP1
— Gergely Orosz (@GergelyOrosz) April 19, 2023
An unregistered security is a financial instrument that is not registered with the appropriate regulatory authorities. Securities need to be registered with the Securities and Exchange Commission (SEC) in the United States before they can be traded publicly.
— Sheridan (Taylor’s Version) 💙🕰🪩 (@IStayedAnyway13) April 19, 2023
oh end cryptocurrency again for me mother pic.twitter.com/vuGNak7QmR
— z (@bazIenka) April 19, 2023
nothing like waking up to a new scott swift job https://t.co/n5wBP2Kfjq
— jo (@my_old_scarf) April 19, 2023