It has been almost a year since the FTX, a crypto exchange company filed for bankruptcy. When the news initially broke out, people around the world were baffled as the company seemed to be doing well for itself. It was popularly known for its ties to several sports figures around the world, including a few major NBA athletes. However, after finding out that the company misused a significant amount of it’s customers money, FTX was slammed by people globally.
Sam Bankman-Fried was the mastermind behind the scheme that was under investigation after $1 billion of customer funds disappeared. A class-action lawsuit was filed against Bankman and multiple celebrities. It included NBA stars Stephen Curry and Shaquille O’Neal who were sued for the $32 billion deception scheme. The founder was arrested in December 2022, in the Bahamas following this major lawsuit. However, his ex-girlfriend, Caroline Ellison threw him under the bus.
Over time, investigators undercovered that several billions of dollars in customer funds were used by Bankman to buy property, make political donations, and run another crypto trading firm called Alameda Research. Ellison claimed, “For any major decisions, I would always run them by Sam. He directed me to commit these crimes.” Bankman allegedly knew that his decisions were risky and would get him into later, which they later did.
She added that he wasn’t the greatest romantic partner. Ellison pled guilty to charges of lying to investors. This was only one of many charges placed against her according to sources. However, Bankman has denied all charges placed against him.
How are Stephen Curry and Shaquille O’Neal involved with FTX?
Now coming back to the athletes who were involved with FTX. Stephen Curry and Shaquille O’Neal were two of the biggest names involved with the company. Their association stems from celebrity endorsements that FTX managed. Both individuals did not have anything to do with Bankman’s schemes. But it was because they promoted the company through advertisements that they were sued.
The contracts signed between the athletes and FTX weren’t disclosed to the public. In fact, both athletes have probably realized that the endorsement was of no good as Shaq hilariously once taunted Curry on live television saying, “You’re my favorite player I just wanna say congratulations my brother, and thanks for getting me in trouble don’t say nothing be quiet.” This comment was from when Curry won the Kareem Abdul-Jabbar Social Justice Champion Award in July 2023.
FTX?? pic.twitter.com/sdZr0LISWM
— Rob Perez (@WorldWideWob) May 24, 2023
The FTX company also had naming rights to the Miami Heat’s Arena. However, soon after the lawsuit took place, the organization pulled out of its association with the company. Based on the Heat’s success in recent years, several new companies charged at the opportunity to acquire naming rights of the arena. Even an adult film company offered to buy naming rights. Now the arena is called the Kaseya Center, after the rights were acquired by a security software company based in Miami.