When lawmakers and regulators who wrangle over environmental, social and governance issues traveled through Union Station in Washington this summer, they likely passed beneath a billboard showcasing the new ESG advisor for the cryptocurrency platform FTX: Gisele Bundchen.
After its catastrophic collapse in November, investors sued not only FTX but its supermodel backer as well, for endorsing the exchange in what they alleged to be a kind of star-studded Ponzi scheme.
The case stands as a stark reminder of how the rise of celebrity endorsers of corporate sustainability efforts has created risks for both the companies and the bold-faced names serving as their pitch men and women.
Source: FTX-Gisele Partnership Highlights Risks of Celebrity ESG Roles
