Taylor Swift's $100M FTX Deal Falls Through Amid Bankruptcy Chaos

Taylor Swift's $100M FTX Deal Falls Through Amid Bankruptcy Chaos

According to an individual familiar with the matter, renowned artist Taylor Swift reportedly finalized and consented to a sponsorship agreement with FTX, a crypto exchange currently facing bankruptcy. The deal, which had been under deliberation for several months, ultimately did not materialize as FTX executives opted against proceeding with it, CNBC reported.

In a contradiction to the public messaging surrounding the failed FTX-Swift deal, The New York Times previously reported on the actual nature of the agreement. According to public statements made by a class-action attorney, Taylor Swift exhibited thorough diligence by inquiring with the exchange about the classification of its listed assets as unregistered securities. These statements commend the artist's proactive approach in seeking clarification on this matter.

According to the person familiar with the matter who spoke to CNBC, despite the earlier indications of a failed deal, Taylor Swift did, in fact, agree to the sponsorship agreement. The signed agreement was reportedly sent to FTX founder Sam Bankman-Fried's email inbox, but it remained unanswered for a few weeks. Ultimately, a group of FTX executives managed to persuade Bankman-Fried to abandon the reported $100 million deal, leading to its non-fulfillment.

Confirming information from three additional sources familiar with the matter, The New York Times reported that Taylor Swift's team indeed signed the deal with FTX following six months of negotiations. However, it was ultimately FTX founder Sam Bankman-Fried who decided to terminate the agreement.

In light of ongoing federal and bankruptcy proceedings, the person familiar with the matter requested to remain anonymous. The initial report regarding the FTX-Swift partnership was disclosed by The Financial Times, shedding light on the existence of the collaboration.

In November 2022, FTX filed for bankruptcy protection, facing financial challenges. Furthermore, FTX founder Sam Bankman-Fried is currently facing multiple federal charges, including fraud and campaign finance violations. 

Additionally, three other FTX executives, namely Gary Wang, Caroline Ellison, and Nishad Singh, have pleaded guilty to different federal charges and are cooperating with the government's prosecution of Bankman-Fried. These developments reflect the legal complexities surrounding FTX and its key personnel.

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