Posted on 11/20/2022 5:22:20 AM PST by canuck_conservative
The company hired Curb Your Enthusiasm’s Larry David to pitch crypto to potential investors as a sort of anti-spokesperson, admitting he knew nothing about digital currency. The commercial closes with David rejecting FTX, with a voice-over warning that said: “Don’t be like Larry. Don’t miss out on the next big thing.” ...
Tom Brady’s FTX investment began when he and his wife, Gisele Bündchen, bought an undisclosed equity stake in FTX in June 2021....
But after news broke on November 3 that FTX could be facing a liquidity crisis, investors scrambled to withdraw their holdings, demanding withdrawals worth $6 billion. FTX promptly froze all accounts. On Friday, November 11, 2022, Bankman-Fried stood down as CEO and the company filed for bankruptcy with potentially more than one million creditors in the lurch....
The lawsuit alleges that these sports and TV celebrities brought instant credibility to FTX, and should be held just as culpable as its disgraced now former-CEO Bankman-Fried....
“Selling an asset that is a financial instrument … is not the same thing as selling sneakers,” Charles Whitehead, professor at Cornell Law School, who is not involved in the case, told CNN Business. “There are anti-fraud and consumer-protection rules for selling bad sneakers. There are more restrictive rules when you’re talking about selling financial assets....
(Excerpt) Read more at stylecaster.com ...
The article says he had an equity stake, so he owned part of the company if true. That is a little different than being paid with crypto tokens to do some advertising.
Sadly, you can’t count on that good health lasting forever. It can turn on a dime in an hour, and bye-bye wealth righ along with it. Only a very few sneak by for a while, I hop you’re one of them.
Lol Larry David has more money than God.
I blame the people in charge, not the celebrities. (Unless they knew in advance)
Why that shaking spaz hasn’t been yanked out of his Bahamas mansion is confusing to me.
Hopefully investigators are dotting i’s and crossing t’s.
A divorce won't protect any of their assets from the claims of creditors. The mistake they made is having her in the ad as well. Since they were both in the ad, all of the assets held by her in her name, him in his name and jointly by the two of them will be subject to claims. Again, a divorce will not help in that regard. Had only Tom been in the ad, the personal assets of his wife and any assets owned by them jointly would not be at risk.
The equity is now zero right?
But I guess having equity could make one liable…
“...the suit also claims that FTX’s yield-bearing accounts represent unregistered securities under federal and Florida law.”
This part could get interesting. A well-connected scam artist who gives to the Democrats doesn’t have to worry about federal prosecution, but now Florida law shows up.
The question becomes: Can the feds move all of the future investigations to DC, and out of the hands of DeSantis?
“Take off and nuke the site from orbit. It’s the only way to be sure…”
The Dems should be happy all the money went to Dem elections.
He may have had to come back to the NFL because he needs the money
Maybe, if only Tom was in the commercial. But they were both in the commercial, so to the extent they may be held liable for being in the commercials, they are both subject to liability, and it does not matter which holds the assets.
While I would be very worried if I were them, I am still skeptical that they will have to pay in the end. A claimant will have to show causation. Certainly institutional investors, which is where the overwhelming percentage of the investments in FTX came from, have no plausible claim that they invested because a jock and model said it was a good idea.
As for individuals, I expect, and hope, that at a minimum they would have to show they had some public reputation for special knowledge. If Tom was touting a medical device that he credited for his longevity as a NFL player, he is claiming personal knowledge of a matter central to his professional career: "trust me, I use this myself as a NFL quarterback, and I have first hand knowledge that it works." But even if the two of them really believed investing in FTX was a good idea, why would anyone think they had any particular knowledge crypto trading, and that the commercial was a personal testimonial, and not just paid shilling?
The other articles I have read state that Tom and Gisele were paid with an equity stake in FTX in exchange for their endorsement.
43,000
So, you only wanted him for his $$$, not his persona?
Shame on you, but I'll bet Tom has a few million hidden somewhere, the man does plan ahead.
“I saw tons of military retirees down in Florida at Patrick AFB....they just golfed and got drunk every day. Many people don’t have a Plan B.”
This extends highly compensated retired managers too. I know of one case where “tons of” includes an excessive weight gain, in addition to daily cart golf and heavy drinking. Some companies provide “transition services” to retiring executives to help, especially the “no Plan B’ers”.
It’s fascinating how quickly certain lawsuits are filed and other ones that should be are not, if ever. If this suit did not include all the high ranking people at FTX, one has to why? I am not aware about how Brady was utilized to peddle FTX, if he received his shares as payment to use his name to bring in other investors.
Surely he wasn’t sitting in his backyard with a can of Narragansett after a game - wondering in the quiet moment how he could expand his wealth in crypto as part of his Plan B. Someone was connected to his advisors to whom FTX made its pitch to rope him in. And since MA is over 75% voting demonkkrap, no surprise if their son Brady was given an “opportunity” from party connected, money grubbing grifters - something that never would have been offered to George Carlin. Brady lived in the bubble of an unreal world.
Well, there ya have it, a talking head and his 'expert opinion'.
Sounds like the same yakkers on any TV or podcast sound bite {or FReeper expert}.
Liable for what? To whom?
Any fool that invests in crypto of any brand, deserves what they get, and that includes 'Bit Coin'.
Just my opinion, but Tom Brady’s intellect isn’t even remotely near Carlin’s.
I agree with your assessment.
I don’t know that pitchmen for a product that is so fraudulently mismanaged should be held liable unless they had knowledge of the fraud. They are also victims of the mismanagement and fraud.
Hopefully, few people think that celebrity pitchmen have detailed and in depth knowledge of the products they pitch. Do your own evaluation before spending your money.
Some celebrity said ________ is the best tasting _______ ever, but I don’t like it at all. Can I get my money back from that celebrity?
I think their “investment” is an equity stake.
“The other articles I have read state that Tom and Gisele were paid with an equity stake in FTX in exchange for their endorsement.”
Very believable. A low risk “investment” with potential big pay-off. I once knew a successful, very wealthy West Coast litigator. He told me despite his successful, multi-state law practice that took years to build, most of his wealth came from clients who gave him an equity state as payment for legal fees early in his career because he wanted the experience of legal practice. Many of his “investments” did not pay-out over time because the businesses folded. But a handful remained and one paid him more every year more than he made from his successful law practice. He died quickly, at age 67 - less than a year after cancer diagnosis. Could not take $$ with him.
But I suppose that was what got him where he was in the first place.
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Astute comment.
He can’t turn off the drive that’s become ingrained into his personality. Pulling back is just not something people like him can do. You see this in politics too — they never want to give it up and go do something else.
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