How Taylor Swift Dodged the $5 Billion FTX Lawsuit in 2023 by Asking One Crucial Question
Discover how Taylor Swift avoided being part of the massive $5 billion class action lawsuit against FTX by exercising financial caution and asking a vital question before signing a $100 million sponsorship deal.
Pop icon Taylor Swift narrowly escaped being embroiled in the $5 billion class action lawsuit targeting FTX and its celebrity endorsers by simply asking a key question that many overlooked.
Important Highlights
- Adam Moskowitz, lead attorney in the FTX celebrity lawsuit, revealed Swift was the only celebrity who inquired if the promotion involved unregistered securities.
- Swift was in negotiations for a $100 million deal with FTX in 2022 but ultimately declined to proceed, according to Financial Times.
- Other celebrities named in the lawsuit include Tom Brady, Larry David, and Shaquille O’Neal.
Earlier this year, Adam Moskowitz shared on The Scoop podcast that Taylor Swift stood out by asking, “Can you confirm these are not unregistered securities?” before engaging with FTX.
This simple question highlighted her due diligence, which protected her from legal liability tied to promoting unregistered securities—a violation under state securities laws that can lead to severe consequences.
FTX, which filed for bankruptcy in late 2022, had been in talks with Swift for a lucrative sponsorship deal that dissolved just before the company’s collapse.
The lawsuit currently targets 11 celebrities and one basketball team who promoted FTX’s products without verifying their legal status. Moskowitz emphasized that if others had asked the same question as Swift, they might have avoided the costly lawsuit.
According to Moskowitz, FTX automatically enrolled users in interest accounts deemed securities by the SEC, meaning endorsers were indirectly promoting unregistered securities.
Swift’s keen financial insight may be influenced by her family background—her father, Scott Swift, is a managing director at the Swift Group, a Bank of America wealth management firm, and has decades of experience in financial advising.
With a net worth estimated at $570 million by Forbes and a real estate portfolio valued over $150 million, Taylor Swift’s prudent approach to financial dealings continues to safeguard her assets and reputation.
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