FTX, a bankrupt crypto exchange, is investigating the possibility of reclaiming millions of dollars paid to celebrity athletes and sports teams for promoting.
FTX Is Trying To Recover Millions Of Dollars Paid To Celebrity Athletes
FTX, a bankrupt crypto exchange, is investigating the possibility of reclaiming millions of dollars paid to celebrity athletes and sports teams for promoting the exchange prior to its bankruptcy filing in November 2022.
On August 31, FTX's financial advisors produced a full list of high-profile persons and firms who were funded as part of the exchange's marketing activities in a court filing. The investigation's goal is to assess if the payments can be reversed under regulations that allow bankrupt companies to recover funds.
However, the court filing cautioned that the final amount FTX could recover from these efforts might differ significantly from the reported figures.
Payments on the list include $750,000 to former basketball superstar Shaquille O'Neal, more than $300,000 to tennis pro Naomi Osaka, more than $270,000 to former baseball great David Ortiz, and more than $200,000 to American football quarterback Trevor Lawrence. In addition, the Golden State Warriors earned about $420,000 in compensation, and the Miami Heat received more than $250,000 in payouts.
It's worth noting that several of the celebrities cited in FTX's complaint have been subjected to class action lawsuits from FTX users seeking compensation. Groups of FTX clients have sued O'Neal, Osaka, and the Golden State Warriors.
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