Bankrupt FTX’s Lavish Celebrity Deals Under the Lens

In recent court documents pertaining to its bankruptcy, it’s revealed that FTX, the now defunct cryptocurrency exchange, had heavily invested in celebrity endorsements. Notable personalities like Shaquille O’Neal, Naomi Osaka, and David Ortiz were roped in as part of their aggressive marketing push.

The U.S. Bankruptcy Court in Delaware received a submission from FTX’s management that sheds light on the company’s promotional expenses. While FTX indicates the disclosed list might not be complete, the team is actively searching for any unaccounted payments to potentially recoup some funds to offset its debts.

Detailed in the documents, payouts include approximately $750,000 to NBA legend Shaquille O’Neal, around $308,000 to tennis sensation Naomi Osaka, nearly $206,000 to Jacksonville Jaguars’ Trevor Lawrence, and an estimated $271,000 to ex-Boston Red Sox player David ‘Big Papi’ Ortiz. Notably, some of these stars, like O’Neal and Osaka, face legal troubles. They’ve been named in a class-action lawsuit accusing them of endorsing products that allegedly resemble unregistered securities.

Moreover, FTX didn’t stop at celebrity contracts. Its former CEO, Sam Bankman-Fried, frequently entertained celebrity guests in his Bahamas residence, including former heads of states and pro sports celebrities. Extending its reach to sports, FTX even secured naming rights for the Miami Heats’ Stadium (which got removed shortly after the exchange’s downfall) and shelled out whopping $6 million for a Super Bowl commercial.

While the present FTX management hopes to recover a significant chunk of the funds spent on celebrity partnerships, they admit the actual sum retrieved might differ from their initial estimates.