Numerous celebrities have experienced significant financial losses after getting involved in the world of digital assets. From endorsing coins to buying expensive NFTs, these A-listers have found themselves in trouble, facing fines and lawsuits. Let’s take a closer look at five stars who regret their foray into crypto.
Tom Brady, the NFL legend, became a brand ambassador for FTX, claiming it was a fast, easy, and safe way to invest in crypto. Unfortunately, the exchange turned out to be anything but that, leaving customers unable to access their savings. Brady himself suffered a substantial loss when the company went bankrupt, rendering his shares worthless. To make matters worse, he is now being sued by disgruntled FTX users who blame his endorsement for their financial damages.
YouTuber Logan Paul also faced difficulties after launching his crypto project, CryptoZoo, which promised to be a profitable game. However, the game never launched, leaving fans who had invested millions in non-fungible tokens disappointed. Paul eventually apologized and started buying back NFTs from fans to avoid lawsuits.
Former child star Lindsay Lohan took a different career path and became an aggressive promoter of crypto projects and NFT collections on social media. However, she often failed to disclose that she was being paid for these endorsements. This led to scrutiny from the Securities and Exchange Commission (SEC), accusing her of boosting Justin Sun’s Tron and BitTorrent tokens. Lohan settled the charges by paying a fine along with Ne-Yo and Akon.
Kim Kardashian, known for her massive Instagram following, used her influence to endorse a little-known altcoin called Ethereum Max. Her post was claimed to have the largest audience reach in history. The SEC intervened and fined her $1.26 million, prohibiting her from endorsing cryptocurrencies on social media for three years. She was paid $250,000 to promote the altcoin, which subsequently lost 98% of its value, raising suspicions of a pump-and-dump scheme.
Even Justin Bieber, the popular singer, fell victim to the volatile NFT market. He spent $1.3 million on a Bored Ape NFT, only to see its value plummet. Currently, the best offer for his collectible stands at just $28,500, representing a loss of 97.8%.
These examples serve as a reminder that celebrities should think twice before diving into the world of cryptocurrencies and NFTs. Endorsements and investments can easily backfire, leading to substantial financial losses.