New Report: FTX Abandoned the Deal with Taylor Swift, Not the Other Way Around
Now-defunct cryptocurrency exchange FTX pulled out of the planned deal with Taylor Swift, not the other way around.
According to sources cited by The New York Times, Swift signed a proposed tour sponsorship agreement with FTX in the spring of 2022, following six months of negotiations.
The deal was reportedly worth up to $100 million, and discussions had taken place about other partnership approaches before settling on the tour sponsorship opportunity.
However, after Swift's team signed the sponsorship agreement, former FTX CEO Sam Bankman-Fried backed out, leaving Swift's team "frustrated and disappointed," the report said, citing two people familiar with the matter.
Previous reports had claimed that Swift pulled out of the deal after doing due diligence on FTX, asking the exchange to prove that its cryptocurrencies were not unregistered securities.
The reports cited Adam Moskowitz, the lawyer handling a class action lawsuit against FTX promoters like Shaquille O’Neal and Tom Brady.
However, in an interview with the NYT, Moskowitz said he had no inside information about the talks.
News of Swift's potential partnership with FTX first emerged in December, amidst a wave of negative press surrounding the exchange.
At the time, FTX was grappling with a liquidity crisis and was unable to fulfill customer deposits, which eventually resulted in its closure in November.
Bankman-Fried and his associates have since faced allegations of using customer funds to support his trading firm, Alameda Research, as well as for personal investments.
Bankman-Fried left the firm in November and has been charged by multiple agencies in relation to his alleged actions. FTX is currently undergoing bankruptcy proceedings as it endeavors to repay its
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