The collapse of FTX, a prominent cryptocurrency exchange, has dealt a severe blow to NFL quarterback Tom Brady, resulting in substantial financial losses.
As a well-known ambassador for FTX, Brady had been actively involved with the company, appearing in commercials and endorsing their cryptocurrency services.
However, the collapse of FTX led to unexpected consequences, impacting both Brady and his former spouse, supermodel Gisele Bündchen.
According to The New York Times, Brady had entered into a lucrative agreement with FTX, receiving a payment of $30 million, primarily in the form of FTX stock.
This investment carried both potential rewards and risks, exposing Brady to the volatility of the cryptocurrency market. Unfortunately, the unexpected bankruptcy filing by FTX in November turned their fortunes upside down.
In the face of FTX’s collapse, Brady reached out to Sina Nader, FTX’s head of partnerships, expressing his deep concerns about the unfolding events.
Nader, who found himself caught up in a crisis meeting with FTX founder Sam Bankman-Fried and other key personnel, returned Brady’s call promptly, recognizing the gravity of the situation.
FTX had established strong connections with numerous sports leagues and notable athletes, including the power couple of Brady and Bündchen.
Their involvement extended beyond mere endorsements, as they participated in a massive $20 million advertising campaign, demonstrating their support for the company. TikTok videos featuring Brady and Bankman-Fried further highlighted their seemingly prosperous association.
Recent developments have taken a grim turn, as investors initiated a class-action lawsuit against Bankman-Fried, Brady, Bündchen, and other prominent sports figures.
The lawsuit aims to hold them accountable for the financial losses incurred due to FTX’s collapse. The plaintiffs seek justice and compensation for their investments in the now-defunct crypto empire.
The collapse of FTX had a profound impact on Bankman-Fried, as his net worth plummeted from an impressive $30 billion to a mere $4 million.
In addition to the financial downfall, federal fraud charges have further exacerbated his dire situation, adding to the gravity of the circumstances.