Taylor Swift Saved From $100M Deal, Asks the Right Question About Crypto

• Taylor Swift saved herself from a class-action lawsuit by pulling out of her $100 million deal with FTX.
• The lawsuit accuses celebrities who promoted the firm of promoting unregistered securities and seeks damages over $5 billion.
• FTX ran into trouble due to inadequate liquidity, lavish spending and a line of credit, resulting in its bankruptcy announcement.

Taylor Swift Saved Herself From Class Action Lawsuit

Pop sensation Taylor Swift pulled out of a $100 million deal with FTX, thus saving herself from a class-action lawsuit. She asked one simple question about the company offering unregistered securities before proceeding with the contract, which ultimately saved her from being involved in the legal battle.

Lawsuit Against Celebrities Who Promoted FTX

The plaintiffs behind the lawsuit are seeking damages over $5 billion from celebrities such as Tom Brady, Gisele Bundchen, Larry David, Shaquille O’Neal, Steph Curry and finance YouTubers who had endorsed the now-bankrupt crypto firm. Adam Moskowitz recently appeared on “The Scoop” podcast and claimed that these celebrities did not perform their due diligence to check if they were breaking any laws while promoting FTX’s offerings.

FTX Ran Into Trouble

Last November news broke that FTX was commingling funds with its sister concern Alameda Research leading to customers withdrawing funds and investors pulling out of the exchange. Unfortunately due to inadequate liquidity pool and CEO Sam Bankman-Fried’s massive spending it could not sustain itself leading to its ultimate bankruptcy announcement.

Are Cryptocurrencies Unregistered Securities?

FTX has been charged by SEC for dealing in what it calls “unregistered securities” which is any tradeable asset that holds value but needs to be registered under certain regulations before it can be traded publicly.


By asking an important question about unregistered securities Taylor Swift has managed to save herself from being part of this legal battle against FTX despite being offered a chance at a $100 million deal with them earlier on. This goes on to show how important it is for all stakeholders involved in deals concerning cryptocurrencies or other financial investments to do their due diligence before taking any action involving them.