Taylor Swift Knew There Was Trouble With FTX Before Its Collapse
Taylor Swift apparently knew failed cryptocurrency exchange FTX was trouble from the start.
Attorney Adam Moskowitz revealed how 12-time Grammy winner Swift was one of the only celebrities to do their due diligence while considering a deal with the company, which folded last November.
Moskowitz appeared on “The Scoop” podcast on Wednesday, detailing the $5 million class action lawsuit he’s brought against FTX and celebrity spokespeople Shaquille O’Neal, Tom Brady and Larry David, among others.
During the conversation, the attorney said the “Anti-Hero” songstress had entertained the idea of a $100 million sponsorship deal with FTX, but couldn’t shake off the feeling something was amiss.
Moskowitz told host Frank Chaparro that Swift was the “one person” who pressed FTX on if their investments were legal.
“In our discovery, Taylor Swift actually asked them, ‘Can you tell me that these are not unregistered securities?’” he recalled.
Assets like stocks and cryptocurrency must be registered with the Securities and Exchange Commission before being offered to the public.
Unregistered securities, like FTX was determined to have been selling, are not subject to the same laws and protections as those under SEC oversight, leaving their investors vulnerable to financial fraud, according to the regulator.
The artist, who is worth a reported $570 million, might have gotten some sharp investing advice. The “Mastermind” singer’s father, Scott Swift, previously worked for Merrill Lynch.
FTX’s former CEO, Sam Bankman-Fried, was arrested in the Bahamas in December 2022, accused of wire fraud, securities fraud, conspiracy and money laundering. If convicted on all charges, he could face up to 115 years in prison.