The terms included selling tickets as NFTs, although FTX marketing staff told the Times that"no one really liked the deal" and they thought it was"too expensive from the beginning."
"In our discovery, Taylor Swift actually asked them: 'Can you tell me that these are not unregistered securities?'" Moskowitz said. A security is a tradeable asset that holds value, like a stock or a bond. All securities that are offered and sold in the US must be registered with the Securities and Exchange Commission. In aagainst FTX executives last December, the SEC said the company's cryptocurrency, FTT, is classified as a security because it was sold as an investment contract. It was not appropriately registered, however.
Moskowitz's lawsuit, therefore, accuses the celebrities of promoting an unregistered security and seeks to recover damages for customers who lost money after FTX filed for bankruptcy last November. "In order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme," the suit claims that the defendants "made numerous misrepresentations and omissions."
I knew SBF was trouble when he walked in...
She seems smarter than RepMaxineWaters, perhaps Taylor should be the head of the Financial Services Committee?