FTX Group consultants are examining the possibility of recovering millions of dollars paid to celebs, consistingof Shaquille O’Neal and Naomi Osaka, for their recommendations of Sam Bankman-Fried‘s cryptocurrency platform priorto its collapse.
The monetary advisors employed by FTX haveactually takenalookat the payments made to these professionalathletes to figureout if they can be recuperated under the guidelines that enable business to reverse deals performed simply previously filing for Chapter 11 personalbankruptcy, Bloomberg reported, mentioning court files.
While these disclosures do not offer a thorough introduction of FTX’s recommendation costs, they shed light on how Bankman-Fried’s empire leveraged the popularity of star professionalathletes, Major League Baseball (MLB), National Basketball Association (NBA) teams, and Formula 1 to boost its brandname exposure.
The degree to which FTX consultants think the payments can be recuperated, as well as whether any professionalathletes or groups have currently provided to return the funds, stays unidentified.
FTX’s disclosures explain numerous of the transfers to professionalathletes, groups, and leagues as prepayments associated with marketing or sponsorship contracts.
However, the exchange has warned that the monetary disclosures might not be thorough due to a absence of comprehensive record-keeping.
The business’s brand-new CEO, John J. Ray III, hasactually confessed that FTX didnothave dependable monetary details at the time of filing for Chapter 11 and did not keep total monetary records.
FTX likewise acknowledged the possibility that professionalathletes, groups, or other celebrations might haveactually withdrawn or balancedout deposits priorto the insolvency filing.
FTX Paid Millions to Professional Athletes and Teams
According to FTX’s disclosures, roughly $4.9 million was paid to MLB, which mandated umpires to wear FEET