Taylor Swift, a popular American singer and songwriter, reportedly rejected a sponsorship offer from crypto exchange FTX over concerns about unregistered securities.
The exchange had reportedly offered Swift an opportunity to be the face of a new campaign promoting its services and products.
FTX has been actively promoting its brand through high-profile sponsorships in the sports and entertainment industry. The exchange recently announced a 19-year partnership with the NBA team Miami Heat, which includes naming rights for the team’s home arena.
According to a source familiar with the matter, FTX approached Swift’s team with an offer that would have paid her millions of dollars in exchange for her endorsement of the exchange. However, the deal reportedly fell through after Swift expressed concerns about FTX’s compliance with securities laws.
The source stated that Swift’s team conducted its own due diligence on the exchange and found that FTX had not registered with the US Securities and Exchange Commission (SEC). As a result, Swift declined the offer, citing concerns about potential legal issues.
The SEC has been cracking down on unregistered securities offerings in the crypto industry, targeting companies that fail to comply with securities laws. The agency has issued several warnings to investors about the risks of investing in cryptocurrencies, particularly those that are not registered with the SEC.
FTX has not yet registered with the SEC but has been expanding its services in the US market. The exchange recently acquired the naming rights to the Miami Heat’s home arena for $135 million, a move that was seen as a major push to establish its brand in the US.
FTX CEO Sam Bankman-Fried has been vocal about his support for regulatory compliance in the crypto industry. In a recent interview, he stated that the exchange was working to ensure that it complied with securities laws in the US and other jurisdictions.
Despite the setback with Swift, FTX has continued to pursue high-profile sponsorships in the sports and entertainment industry. The exchange recently announced a partnership with Major League Baseball (MLB), becoming the first crypto platform to sponsor a professional sports league in the US.
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In conclusion, Taylor Swift reportedly declined a sponsorship offer from FTX over concerns about the exchange’s compliance with securities laws. The rejection underscores the growing importance of regulatory compliance in the crypto industry and highlights the need for exchanges to take steps to ensure that they are in compliance with securities laws. Despite the setback, FTX has continued to pursue high-profile sponsorships, indicating that the exchange is still bullish on its prospects in the US market.