The Texas State Securities Board has launched an investigation into all celebrities that promoted FTX, claiming that investment advice must be given only after disclosing all known material facts.
After cryptocurrency exchange FTX went bankrupt a month ago, the repercussions of various sports organizations associating with the company continue to loom.
Golden State Warriors
Chicago Bulls
Houston Rockets
Indiana Pacers
Utah Jazz
Boston CelticsFirst, the Golden State Warriors were sued for promoting FTX. The Warriors had named FTX to be its official cryptocurrency platform while calling it a first-of-its-kind cryptocurrency partnership in professional sports.
Now, Warriors superstar guard Stephen Curry is being investigated for promoting the now-failed cryptocurrency exchange as well. The Texas State Securities Board has included all celebrities that were associated with FTX in its broader investigation into the company.
"Anyone who renders investment advice in Texas typically needs to be registered and they typically have to truthfully disclose all known material facts," said Joe Rotunda, director of enforcement at the Texas State Securities Board, to The Texas Tribune. "In Texas, there is not a different system of justice or regulation for people who are celebrities."
The world's third-largest cryptocurrency exchange FTX filed for bankruptcy a month ago after it was no longer able to fulfill customers' withdrawal requests following several notable events.
Celebrities have already had to deal with the consequences of promoting cryptocurrency. Kim Kardashian had to pay $1.26 million for not disclosing that her Instagram post that promoted a crypto coin was a paid promotion.
FTX was such celebrities as NFL quarterback Tom Brady, tennis star Naomi Osaka, comedian Larry David, Kardashian, an others.
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