She knew it was trouble! How Taylor Swift snubbed a £80m FTX deal and sidestepped a £4bn lawsuit
Taylor Swift refused to sign a £80million sponsorship deal with disgraced crypto exchange FTX after raising concerns over regulation – subsequently sidestepping a £4billion lawsuit hitting celebrities who weren’t as savvy.
The global superstar, whose songs include hits such as Love Story and I Knew You Were Trouble, snubbed an approach to become an FTX spokesperson and investor, ending talks just months before the exchange collapsed in November.
Sam Bankman-Fried, FTX founder and chief executive, is reportedly a ‘fan of Tay Tay’ and personally pushed for a deal to be made with her.
Snub: Taylor Swift was approached to become an FTX spokesperson, ending talks just months before the exchange collapsed in November
But the singer, 33, was put off by the firm’s lack of registration with the US authorities, according to an interview with Adam Moskowitz, a lawyer who is representing crypto investors in a £4billion lawsuit against celebrities who backed FTX.
Discussing stars who had allegedly failed to ask questions about FTX, Moskowitz told The Scoop podcast: ‘The one person I found that did that was Taylor Swift.
‘In our discovery, Taylor Swift actually asked them, “Can you tell me that these are not unregistered securities?”’
The lawsuit seeks damages from Bankman-Fried and 11 US athletes, including basketball players Shaquille O’Neal and Stephen Curry, and American Football legend Tom Brady.
Under US law, stars are liable if they promote unregistered securities for financial gain, showing how Swift’s due diligence paid off.
FTX, which was once valued as much as £25billion, went bankrupt at the end of last year, sending shockwaves through the crypto industry.
Bankman-Fried is awaiting trial on criminal charges of stealing billions of dollars from FTX customers.
On Twitter, Elon Musk responded to the story about Swift stating that he wasn’t ‘surprised’ by the news, adding: ‘Taylor is smart and her father is a well-regarded investment banker.’
Swift’s father Scott worked for Merrill Lynch in various roles for more than 30 years, including as a stock broker and investment banker. The singer is worth an estimated £458million, according to Forbes.