Economy

Tom Brady, others investigated in Texas for FTX endorsements

Pinterest LinkedIn Tumblr

(NewsNation) — Some of the biggest names in sports and entertainment, including NFL quarterback Tom Brady and the NBA’s Steph Curry, are under investigation by a Texas regulator for possible violations of securities laws in connection to cryptocurrency exchange FTX.

Joe Rotunda, director of enforcement at the Texas State Securities Board, told Bloomberg the board is reviewing payments received by the celebrities to endorse FTX, as well as disclosures they made and how accessible they were to retail investors.

NewsNation partner The Hill reports that this investigation comes a week after an investor filed a class-action lawsuit against FTX, its former CEO Sam Bankman-Fried and other celebrities for their cryptocurrency endorsements. The investor alleges that people named in the suit made “misrepresentations and omissions” that ultimately led to him to invest in the company, costing him and others millions of dollars.

The lawsuit alleges FTX investors lost at least $11 billion in damages.

FTX filed for bankruptcy earlier this month, and Bankman-Fried resigned, after a market crash caused investors to collectively lose billions. The troubles came to light when rival crypto firm Binance swooped in to rescue FTX, but then pulled out and liquated all their holdings in the exchange. The U.S. Securities and Exchange Commission and Justice Department are investigating, the Wall Street Journal reported.


Storm could impact Thanksgiving travel across US

Scrutiny from state-level financial authorities is usually less high-profile than an investigation by the SEC, Bloomberg notes, but the investigation in Texas could still lead to significant fines.

Rotunda, per Bloomberg, is communicating with other states as it digs into the FTX issues. He said he doesn’t know whether the SEC is probing celebrity endorsements as well.

The SEC declined to comment to Bloomberg, and so far, the celebrities involved in the lawsuit and investigation have not commented either.

Federal Defense Attorney Ronald Chapman said on “Morning in America” that there are “three buckets of liability” the celebrities’ involvement in FTX could fall under: administrative liability, civil liability, which can result in significant fines, and criminal liability.

“I don’t know if Tom Brady and these celebrities would be considered criminally liable,” Chapman said. “But Texas and the federal government do have the ability to pursue false and misleading statements made by promoters of securities where they knew that those statements were false.”

“I think the real question is, who is going to be the first entity to move forward with allegations, charges or fines? And who’s gonna have to sit and wait,” Chapman added.

© 1998 – 2022 Nexstar Media Inc. | All Rights Reserved.

Trending on NewsNation


Cybersleuths look for clues in Idaho victims’ Venmo accounts

Banfield Video Icon

Video


Video evidence raises questions on Robinson’s death

Crime Video Icon

Video


These restaurants are open on Thanksgiving

Holidays


Mexican prosecutors issue warrant in Shanquella Robinson’s death

Crime 1 hour agoVideo Icon

Video


Witness: Walmart shooter seemed to target certain people

Crime 1 hour agoVideo Icon

Video


Here’s when major stores open on Black Friday

Your Money 1 hour ago

Elections 2022


Murkowski, Peltola reelected to Congress from Alaska

Elections 2022


What are Republicans planning with their newly won control of the House?

Politics


Georgia runoff heats up ahead of early voting

Georgia 2022 midterm election

Video Icon

Video


Trump’s record in governor races: A near-even split

Elections 2022


GOP saw mixed results in attempts to attract Latino voters

Elections 2022

Gallery Icon

Gallery


Sununu: GOP must stop supporting ‘unelectable’ candidates’

Politics

Video Icon

Video


More Elections 2022

More Stories


Biden will announce his future political plans in the new year

President Joe Biden said he will be considering his political future over Thanksgiving break, but not announcing his plans until early 2023.

Politics 16 mins ago

Video Icon

Video


Witness: Walmart shooter seemed to target certain people

The Walmart supervisor who shot and killed six co-workers in Virginia seemed to target people and fired at some victims after they were already hit and appeared to be dead, said a witness who was present when the shooting started.

Crime 1 hour ago

Video Icon

Video


Long-lost sisters to spend Thanksgiving together after 45 years

A 45-year search for a long-lost sister has ended, and now, they are spending Thanksgiving together for the first time.

Holidays

Video Icon

Video


Colorado grand jury indicts deputies in shooting death of man, 22

A grand jury has indicted two Colorado sheriff’s deputies in the death of a 22-year-old man who was shot after calling 911 for roadside assistance while experiencing what his mother described as a mental health crisis, according to online court records.

Crime


Sheriff: She burned boyfriend’s house after woman answered phone

She was allegedly angry because she had earlier FaceTimed her boyfriend and a woman answered the call — but the woman was said to be a relative of the boyfriend, according to the sheriff’s office.

Crime 2 hours ago


Butterball hotline expert remembers caller’s silly question

Since 1981, countless confused cooks have called up the Butterball Turkey Talk-Line with concerns about thawing, basting or cooking their turkeys. So naturally, the experts at the hotline have fielded just about every question you could think of.

Holidays

Video Icon

Video


How many calories do you consume on Thanksgiving?

How many calories are you consuming on Thanksgiving?

Morning In America

Video Icon

Video


The Memo: Can any Republican defeat Trump and DeSantis?

Trump and DeSantis have raced out to an early lead over all other possible contenders. What will this mean in the 2024 races?

Politics


What makes a Black Friday deal worth it?

Here’s what to consider before you buy.

Your Money

More Stories


WHO, CDC: Record 40M kids miss measles vaccine dose

Health


Thanksgiving day travel off to a smooth start

Holidays

Video Icon

Video


Writer who accused Trump of 1990s rape files new lawsuit

U.S.


Biden considering presidential run over holidays

Politics

Video Icon

Video


Vigil held for Virginia Walmart shooting victims

Crime 2 hours ago

Video Icon

Video


These restaurants are open on Thanksgiving

Holidays


Tips for navigating 2022’s biggest shopping weekend

Your Money


The best deals of the holiday shopping season are here with these Thanksgiving 2022 bargains

Your Money 1 hour ago


Holiday basics: How to have safe, sane Thanksgiving

Holidays


Vittert: Left jumps to conclusions on Colorado shooting

On Balance with Leland Vittert

Video Icon

Video


Video evidence raises questions on Robinson’s death

Crime

Video Icon

Video


Biden administration will pause student loan payments again

Politics

Video Icon

Video