In the wake of the 2021 crypto bull run, celebrities, athletes, and everyone alike flocked to endorse various cryptocurrency projects without much due diligence to capitalize on the industry’s booming popularity.
However, the landscape took a dramatic turn with events such as the FTX fiasco, the Terra Luna collapse, and a wave of scams and hacks, prompting regulators to intensify their crackdown, leading to a mountain of charges against bad actors.
Over the past two years, numerous celebrities once associated with crypto endorsements now find themselves entangled in legal battles. Against this backdrop of amplified regulatory scrutiny, American comedian Larry David looks back on his appearance in an ad promoting the failed cryptocurrency exchange FTX.
Larry David Labels Himself an Idiot for Crypto Ad Role
Regret echoed in Larry David’s words as he candidly shared with the Associated Press, “Like an idiot, I did it,” referring to his role in the Super Bowl commercial promoting FTX.
During the interview, the ‘Curb Your Enthusiasm’ star revealed that he sought advice from friends, whom he believed were “well-versed in this stuff,” before taking part in the infamous commercial. According to David, his friends reassured him, saying it was “totally on the up and up.”
Aired during Super Bowl LVI in February 2022, the ad encouraged millions not to “miss out on the next big thing,” depicting Larry David rejecting conventional investments before embracing crypto.
David openly acknowledged the financial toll, admitting that he “lost a lot of money” as part of his salary had been in crypto. The comedian didn’t shy away from addressing the class-action lawsuit filed against him and fellow endorsers of the defunct exchange.
As Sam Bankman-Fried awaits sentencing, the aftermath has left its mark, not just on individuals but on the crypto industry’s public representation. The conspicuous absence of crypto ads in mainstream media, including the Super Bowl, hints at a trend where celebrities and organizations might be consciously distancing themselves from crypto promotions.
Are Celebs Done with Crypto Ads?
A-listers ranging from Shaquille O’Neal to Madonna, have felt the sting of class-action lawsuits for promoting or being part of crypto initiatives over the past two years.
Notably, one of the major lawsuits during this period implicated boxing superstar Floyd Mayweather and reality TV icon Kim Kardashian for their involvement with EthereumMax, an alleged pump-and-dump scheme.
The Securities and Exchange Commission (SEC) charged Mayweather and Kardashian with unlawfully advertising EthereumMax without disclosing the payment they had received. A Californian Federal Judge later dismissed the case after the two celebrities settled with the SEC.
Similarly, another class-action lawsuit targeted 37 celebrities in connection with the NFT blue-chip project, the Bored Ape Yacht Club. The cohort of actors, singers, and athletes were alleged to have ‘hoodwinked’ fans into buying the NFTs.
As an increasing number of charges are levied against celebrities who may not have conducted thorough due diligence, the observable shift away from crypto advertising and endorsements may indicate waning patience in mainstream media regarding these high-profile promotions.
