A Texas regulator has reportedly launched a probe into whether celebrity endorsements to the now-bankrupt cryptocurrency exchange FTX violated securities laws. Among the celebrities that endorsed FTX US, FTX's American division, were Tom Brady, the football quarterback for the Tampa Bay Buccaneers, and Golden State Warriors star Steph Curry. The regulator is investigating payments received by them as well as what exactly was being promoted, what disclosures were made and how retail investors were able to access those disclosures, Joe Rotunda, director of enforcement at the Texas State Securities Board, told Bloomberg in an interview. "Though the stars’ endorsements aren’t the most immediate priority, they’re still a focus in the regulator’s larger probe into FTX’s collapse," he said. And while probes by state-level financial regulators are typically less notable than an investigation by the Securities and Exchange Commission, which has been clamping down on illicit crypto activities for some time, it can still lead to substantial penalties. Rotunda told Bloomberg that he didn't know if the SEC, which probed FTX earlier this month, was scrutinizing the celebrity promotions of the imploded crypto exchange. The SEC declined to comment to Seeking Alpha's request. As part of the SEC's efforts to crack down on celebrity-focused crypto cases, Kim Kardashian, for example, had agreed to pay $1.26M to resolve charges that she touted a crypto asset security on social media without disclosing the payment she received for the promotion. Earlier, FTX and affiliates have $1.24B in cash, more than debtors had disclosed a few days ago .
