Tom Brady and Steph Curry are targeted by Texas law amid FTX scandal

The scandal surrounding FTX is far from over, as Texas law is now going after several of the celebrities who endorsed the cryptocurrency company in its advertising, including Tom Brady, Larry David and Stephen Curry.

The above was announced by Joe Rotunda, director of enforcement for the Texas State Securities Board, who told Bloomberg News that they are investigating the payments made to the celebrities that Sam Bankman-Fried hired.

Rotunda is examining how these celebrities disclosed their financial holdings in FTX, as well as the extent to which the disclosures were accessible to retail investors. “We’re taking a close look,” he said.

Celebrities are just one element to investigate

Rotunda said FTX is under investigation and is exchanging information with regulators in other states, as there may be securities violations by FTX and FTX-linked entities.

For example, Kim Kardashian promoted FTX on Instagram, but without telling her millions of followers that it was paid advertising. She, Floyd Mayweather and Paul Pierce were named in a lawsuit alleging they duped their followers into buying cryptocurrency as part of a “pump and dump” scheme.

Several celebrities are involved

Last week, an Oklahoma resident who opened an FTX performance account filed a class action lawsuit naming Brady, Curry, David, Brady’s ex-wife, supermodel Gisele Bndchen, Shaquille O’Neal, David Ortiz, Naomi Osaka, Trevor Lawrence, Kevin O’Leary and Udonis Haslem.

All of them were formally charged with promoting a “misleading” platform that preyed on vulnerable retail investors. FTX had closed a number of sports-related deals, some of which are falling apart.