MarketWatch: Understanding the FTX Debacle

These celebrities might want to keep an eye on the $TSLA investors vs. Elon Musk/Doge trial going on

Tampa Bay Buccaneers quarterback Tom Brady and the Golden State Warriors’ Steph Curry are among the celebrities that a Texas regulator is investigating for potential securities-law violations tied to their promotions of crypto exchange FTX.

The regulator is scrutinizing payments received by the celebrities to endorse FTX US, along with what disclosures were made and how accessible they were to retail investors, Joe Rotunda, director of enforcement at the Texas State Securities Board, told Bloomberg News in an interview.

:pushpin: Twitter owner Elon Musk said on Monday evening that the company is planning to delay the relaunch of its $8 per month Blue Verified service.

:pushpin: Musk had earlier said he planned to relaunch Twitter Blue on Nov. 29.

:pushpin: Musk said Twitter will “probably use different color check for organizations than individuals.”

You think you have heard the last of the fraud and theft at FTX and 10 minutes later, wham, another news story about arrogant sociopaths with no consciences stealing the money of naifs who trusted in the “decentralized” defi app.

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4 minute read · November 22, 2022 6:51 PM UTC · Last Updated 16 hours ago

Bankman-Fried’s FTX, senior staff, parents bought Bahamas property worth $300 mln

By Koh Gui Qing

[1/5] View of the entrance to the condominium complex ONE Cable Beach, a beachfront residence in New Providence, Bahamas, November 18, 2022. REUTERS/Koh Gui Qing

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  • Summary

  • Companies

  • FTX unit bought 7 condos in high-end resort for “key personnel”

  • Bankman-Fried’s parents named owners of $16.4 mln vacation home

  • Bankman and Fried tell Reuters: Seeking to return deed to FTX

NEW PROVIDENCE, Bahamas, Nov 22 (Reuters) - Sam Bankman-Fried’s FTX, his parents and senior executives of the failed cryptocurrency exchange bought at least 19 properties worth nearly $121 million in the Bahamas over the past two years, official property records show.

Separately, attorneys for FTX said on Tuesday that one of the company’s units spent $300 million in the Bahamas buying homes and vacation properties for its senior staff, and that FTX was run as a “personal fiefdom” of Bankman-Fried. No further details were given. read more

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Most of FTX’s purchases registered in the documents seen by Reuters were luxury beachfront homes, including seven condominiums in an expensive resort community called Albany, costing almost $72 million. The deeds show these properties, bought by a unit of FTX, were to be used as “residence for key personnel” of the company. Reuters could not determine who lived in the apartments.



The documents for another home with beach access in Old Fort Bay – a gated community that was once home to a British colonial fort built in the 1700s to protect against pirates – show Bankman-Fried’s parents, Stanford University law professors Joseph Bankman and Barbara Fried, as signatories. The property, one of the documents dated June 15 said, is for use as a “vacation home.”

When asked by Reuters why the couple decided to buy a vacation home in the Bahamas and how it was paid for – whether in cash, with a mortgage or by a third party such as FTX – a spokesman for the professors said only that Bankman and Fried had been trying to return the property to FTX.

Celebrity endorsements might not be “bought” in the future if celebreties can be sued for pumping goods or services which are crap. This will be interesting to follow going forward, and as I said yesterday, the bellwether case of someone using their online clout to influence the purchase of junk is now in the courts system: Elon Musk & $TSLA vs. Hundreds of $TSLA shareholders suing Musk for pumping Doge Coin:

Legal experts say the celebrities’ prominence and wealth make them a juicy target for investors looking to recover some of their losses, with the company and co-founder Sam Bankman-Fried essentially broke. FTX put itself and more than 100 affiliates into bankruptcy proceedings this month, shielding them from suits. The promoters, who aren’t in bankruptcy court, have no such protection.

“A lawsuit against celebrities will generate a ton of money, because they will all settle,” said John Reed Stark, former chief of the US Securities and Exchange Commission’s Office of Internet Enforcement. “It’s one thing to make your fans buy your T-shirt with your face on it. It’s another to tout something that causes them to lose their life savings.”

At least three lawsuits have been filed since FTX’s implosion, including one that seeks to represent “thousands, if not millions, of consumers nationwide.” Tom Brady, Gisele Bundchen, Stephen Curry, Shaquille O’Neal and businessman and TV personality Kevin O’Leary are also among the defendants.

The Rise and Fall of FTX Cryptocurrency Exchange

:pushpin: Crypto firm BlockFi filed for Chapter 11 bankruptcy protection in the wake of FTX’s bankruptcy.

:pushpin: It’s the latest in a series of crypto bankruptcies, following FTX, Voyager and Celsius.

Distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey following the implosion of putative acquirer FTX.

In the filing, the company indicated that it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.

In the filing, the company listed an outstanding $275 million loan to FTX US, the American arm of Sam Bankman-Fried’s now-bankrupt empire.