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Tom Brady, Steph Curry and others face a widening securities investigation over FTX crypto fraud

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FTX collapse this bloat of perhaps the biggest financial story of 2022 is getting worse for Tom Brady, Steph Curry and other big proponents of the now bankrupt cryptocurrency platform.

The law enforcement director of the Texas Securities Board announced that state regulators are investigating several celebrities associated with the FTX trading platform. The investigation is an attempt to determine if Brady, Curry and other securities laws were in violation of FTX and cryptocurrencies.

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Texas regulators have begun correspondence with securities regulators in other states, and that parallel states’ celebrity investigations could be announced in the coming weeks or months, a source familiar with the investigation told Sportzshala Sports on Tuesday.

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“Many regulators across the country are expected to likely do a comprehensive review depending on what securities or consumer protections may apply in other states,” the source said. “[Texas] unlikely to be alone.”

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Asked if state investigations could be the first steps towards a possible federal securities investigation involving Brady and other celebrities, the source added: federal regulatory attention at the right time.”

Texas regulators are currently investigating several celebrities, including FTX trading platform Tom Brady, and a source told Yahoo Sports that Texas
Texas regulators are currently investigating several celebrities, including Tom Brady, who are associated with the FTX trading platform, and a source told Sportzshala Sports that Texas is “not likely to stand alone.” (Photo by Sebastian Widmann/Getty Images)

Texas regulatory scrutiny comes after the trading platform collapsed earlier this month, which included freezing billions of dollars in customer accounts while founder Sam Bankman-Freed placed the company in bankruptcy protection. The total loss of assets by FTX customers is still unknown, although various reports put the platform’s financial shortfall at between $8 billion and $12 billion, or possibly much more. Several hedge funds that have invested in the platform have already notified investors of possible losses, including the venture capital fund. Sequoia Capital, which reportedly issued an apology to its partners this week for $150 million in expected losses related to FTX.

What this all means for Brady, Curry and a number of other celebrities is still taking shape. But Texas Securities Authority director Joe Rotunda told Bloomberg this week that payments and shares received by Brady and others will be under the microscope, including their disclosures and agreements with the company. The focus for regulators – both state and federal – will be what aspects of the FTX exchange qualify as “securities”, making them applicable to various securities laws. Historically, security breaches involving endorsers have resulted in potentially significant financial penalties rather than criminal sentences associated with jail time.

This latest round of scrutiny follows a class-action lawsuit filed last week against FTX, Bankman-Fried and a host of platform backers.

Sportzshala Finance legal correspondent Alexis Keenan outlines how FTX will come under scrutiny as federal investigators begin to probe the crypto exchange's executive and customer finances.","thumbnailUrl":"https://s.yimg.com/uu/api/res/1.2/tZcmpDhBbbs0r1A5GKigJA--~B/dz0xNjAwO2g9OTAwO2FwcGlkPXl0YWNoeW9u/https://s.yimg.com/os/creatr-uploaded-images/2022-11/214a9f00-6aa5-11ed-9fef-406bfcf8b33f","uploadDate":"2022-11-22T20:35:20Z","duration":"PT2M35S","contentUrl":"https://video.media.yql.yahoo.com/v1/video/sapi/hlsstreams/519a2323-c070-3575-9471-ff4f1970e9d9.m3u8?site=sports&region=US&lang=en-US&devtype=desktop&src=sapi","embedUrl":"https://sports.yahoo.com/video/expect-ftx-bankruptcy-court-hearing-203520738.html?format=embed","identifier":"519a2323-c070-3575-9471-ff4f1970e9d9"}



Source: sports.yahoo.com

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