Taylor Swift’s Initial Approval of FTX Sponsorship Deal Shakes Cryptocurrency Industry
In a surprising turn of events, music icon Taylor Swift’s involvement with the now-bankrupt crypto exchange FTX has come into the spotlight once again. Contradicting previous reports, the New York Times revealed that Swift had indeed approved a sponsorship deal with FTX last year, despite initial indications that she had walked away after conducting her own due diligence on the company.
During the spring of 2022, the renowned pop star engaged in discussions with FTX regarding a potentially lucrative deal worth up to $100 million. The agreement encompassed the possibility of FTX sponsoring Swift’s tour, marking a significant collaboration between the world of music and the emerging realm of cryptocurrency.
After more than six months of negotiations, Swift eventually signed the sponsorship agreement with FTX. However, FTX’s founder, Sam Bankman-Fried, unexpectedly backed out of the deal, as reported by the New York Times. This decision left Swift’s team disheartened and frustrated, according to sources close to the matter.
Interestingly, prior to this revelation, a lawyer involved in a lawsuit against celebrities who had endorsed FTX had made claims on a podcast that Swift had conducted extensive due diligence on the crypto exchange. Swift had reportedly sought assurance from FTX that its cryptocurrencies were not unregistered securities, a requirement she deemed necessary to safeguard her reputation. Consequently, she had supposedly rejected the deal, leading to numerous stories applauding her business acumen and commitment to responsible endorsements.
The recent turn of events surrounding FTX further underscores the controversy surrounding the company. FTX filed for bankruptcy protection in November 2022, and its founder, Sam Bankman-Fried, is facing a multitude of federal charges, including fraud and campaign finance violations. To compound matters, three other FTX executives—Gary Wang, Caroline Ellison, and Nishad Singh—have pleaded guilty to various federal charges and are now cooperating with the government’s prosecution of Bankman-Fried.
While the full extent of Swift’s involvement with FTX remains unclear, the revelation of her initial approval of the sponsorship deal has raised eyebrows and generated renewed interest in her decision-making process. As the crypto industry continues to navigate its way through regulatory challenges, the association between prominent figures like Taylor Swift and cryptocurrency exchanges will undoubtedly be subject to increased scrutiny.
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