FTX seeks to reverse payments made to Shaq, Naomi Osaka and Miami Heat
Insolvent crypto exchange FTX is penetrating if it can recover the millions of dollars paid to celebrity professional athletes and sports teams that promoted the exchange before it declared bankruptcy last November.In an over 180 page Aug. 31 court filing, FTXs monetary advisors set out a detailed list of high-profile figures and services it paid in its marketing efforts to see if theyre under rules enabling bankrupt business to reverse the payments.The list includes $750,000 made to former basketball professional Shaquille ONeal, over $300,000 to Tennis professional Naomi Osaka, over $270,000 to previous baseball star David Ortiz and over $200,000 to American football quarterback Trevor Lawrence.Highlighted excerpt of payments FTX stated its made to different athletes and professional sports groups. Source: KrollAlso included are nearly $420,000 made to professional basketball team the Golden State Warriors and over $250,000 in different payments to Miami Heat.The filing warned, however, that the final amount FTX might recover from the efforts “may vary materially from the quantity reported.” Related: Apple protects rights to book on Sam Bankman-Fried for $5M: ReportMany of the celebs called in FTXs current filing have actually dealt with class action suits from FTX users seeking damages.O Neal, Osaka and the Golden State Warriors have been taken legal action against by groups of FTX consumers over supposedly promoting the exchange– which they declare offered unregistered securities.The exchange has actually launched a series of lawsuits to attempt recuperate funds with the most current on Sep. 9 versus cross-chain protocol LayerZero Labs in a quote to claw back $21 million that FTX alleged was unlawfully withdrawn prior to the exchanges personal bankruptcy in November last year.In July it sued co-founder Sam Bankman-Fried and other former leading executives to attempt to recuperate more than $1 billion in funds they allegedly misappropriated.Magazine: How to secure your crypto in an unpredictable market– Bitcoin OGs and experts weigh in
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Other Questions People Ask
What payments is FTX seeking to reverse from Shaq, Naomi Osaka, and the Miami Heat?
FTX is attempting to recover substantial payments made to various celebrities and sports teams, including $750,000 to Shaquille O'Neal, over $300,000 to Naomi Osaka, and more than $250,000 to the Miami Heat. These payments were part of FTX's marketing strategy before the exchange declared bankruptcy in November. The court filing outlines these figures as part of a broader effort to reclaim funds under bankruptcy rules.
How does FTX plan to recover payments made to celebrities like Shaq and Naomi Osaka?
FTX's strategy involves a detailed court filing that lists high-profile payments made to athletes and teams, aiming to determine if these can be reversed under bankruptcy regulations. The filing indicates that FTX's financial advisors are scrutinizing these transactions to see if they qualify for recovery. However, the final amount that FTX may successfully reclaim could differ significantly from the reported figures.
What legal actions have been taken against Shaq, Naomi Osaka, and the Miami Heat related to FTX?
Shaquille O'Neal, Naomi Osaka, and the Miami Heat are facing class action lawsuits from FTX users who allege that these celebrities promoted unregistered securities. These legal actions stem from claims that their endorsements contributed to the financial losses experienced by investors. As FTX seeks to reverse payments made to these figures, the ongoing lawsuits add another layer of complexity to the situation.
What is the significance of FTX's court filing regarding payments to athletes?
The court filing by FTX is significant as it outlines a comprehensive list of payments made to various athletes and teams, which could potentially be reversed under bankruptcy laws. This move reflects FTX's broader strategy to recover funds amid its insolvency proceedings. The outcome of this filing could impact not only the financial recovery for FTX but also the reputations of the celebrities involved.
What are the potential outcomes for FTX in reversing payments made to sports figures?
The potential outcomes for FTX in reversing payments made to sports figures like Shaq and Naomi Osaka could vary widely. While the court filing indicates a structured approach to reclaiming funds, the actual recovery may differ from what is reported due to legal complexities. Additionally, ongoing lawsuits against these celebrities could influence the overall success of FTX's recovery efforts.