The crypto ship has sunk, and even celebrities like Tom Brady and Steph Curry have been doomed along with it. One of the most popular exchanges, FTX was recently announced to go bankrupt. And now the company is under the close scrutiny of security regulators.

A few days ago, the former CEO and Silicon Valley’s young billionaire Sam Bankman announced the slump. He resigned from his position after the company went bankrupt.

The sudden crashes in the crypto world and mismanagement in handling the investor’s money reportedly led everything to fall apart. While the company is trying its best to stand on its legs again, the US Securities and Exchange Commission (SEC) and state regulatory bodies like the Texas State Securities Board have initiated a probe, investigating the sudden crash.

Along with the company associates, board members, and officials, celebrities who endorsed the platform are also under scrutiny. Stars from the sports world like Tom Brady and Steph Curry are on the priority list.

Last year, the Buccaneers quarterback and his ex-wife, Gisele Bündchen, reportedly bought stakes in the company. Specifically, Tom Brady had, on various occasions, praised the platform and its future.

Moreover, a young CEO, Sam Bankman’s presence attracted a large audience investing heavily in this volatile market. But unfortunately, it didn’t go as expected. “We are taking a close look at them,” Joe Rotunda, director of enforcement at the Texas State Securities Board, told Bloomberg News in an interview.

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However, they are not the immediate ones to be under the radar. “If a celebrity says, ‘I’ve looked into this investment, and it’s terrific and you ought to put your money into it — and if they haven’t looked into it, that could be a misrepresentation,” a retired securities lawyer told the outlet.

When Tom Brady heaped praises on the company

After buying equity stakes in the exchange, the NFL quarterback ran endorsements campaigns. He explained the possibilities of such newer wealth-creation techniques.

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“This particular opportunity showed us the importance of educating people about the power of crypto while simultaneously giving back to our communities and planet,” Brady mentioned.“We have the chance to create something really special here. And I can’t wait to see what we’re able to do together,” he added.

Well, things didn’t go as predicted, and the promises seem to have failed miserably.

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