Tom Brady FTX ambassador may lose 1.1m shares
Tom Brady, a beloved US National Football League (NFL) figure, has found himself entangled in a significant financial predicament. Recently, documents related to the FTX bankruptcy case revealed that Brady had invested substantial funds in the now-collapsed crypto exchange. Unfortunately, these funds have now become nearly worthless following the bankruptcy filing.
Various media outlets, including The Insider and Bloomberg, have reported that Tom Brady held approximately 1.1 million FTX shares. Additionally, reports indicate that Gisele Bündchen, Brady's former wife and a renowned supermodel, also had a significant investment, owning approximately 680,000 shares in the exchange.
This article explores the journey of Tom Brady, once an ambassador for FTX, and how he lost a considerable number of shares in the exchange. We will also assess the potential for the recovery of these funds.
Tom Brady FTX affiliations
Since 2021, former NFL player Brady has served as the ambassador for the now-insolvent crypto exchange FTX. His ex-wife, Gisele Bündchen, has also been associated with the company. Together, they have participated in various advertising campaigns promoting FTX services, which have faced significant criticism from the crypto community.
Investors hold the couple responsible for intentionally encouraging people to invest in the crypto firm, leading to a lawsuit, as reported by Business Insider. The lawsuit was filed in November 2022 and included several other prominent figures from the sports and entertainment industries.
On May 11, 2023, an amended complaint was filed in the Florida District Court. Reports suggest that Dan Friedberg, the former chief compliance officer of FTX exchange, is cooperating with the lawyers and providing valuable information regarding the FTX promotional campaigns. Friedberg's involvement indicates that a substantial portion of the campaigning occurred in Florida.
Initially, some defendants claimed that the promotional activities were unrelated to Florida. However, with Friedberg's statement, the class action lawyers now have evidence to challenge the defendants' claims. Currently, the legal proceedings for the case are underway in the Florida District Court.
Can Tom Brady FTX shares be recovered?
Brady and his former wife, Bündchen, possessed a combined total of approximately two million devalued shares. Before the collapse of FTX, these shares held a considerable value in the millions. Forbes estimated Brady's claims to be worth around $45 million and Bündchen's shares to be approximately $25 million. However, as Sam Bankman-Fried's firm faced mounting losses, the value of these shares plummeted.
Currently, the chances of stakeholders fully recovering their funds are improbable. The downfall of FTX resulted in a loss of approximately $32 billion, with only $7.3 billion having been recovered thus far. Given this significant disparity, it is unrealistic to expect all stakeholders to be able to retrieve their assets.
Other celebrities who lost funds in the FTX collapse
Brady and Bündchen are not the only high-profile individuals involved with Sam Bankman-Fried's bankrupt exchange. A roster of celebrities from the sports and entertainment worlds became investors in the company prior to its insolvency. Notably, Robert Kraft, the owner of the New England Patriots, held approximately 630,000 common shares in the firm.
The sports industry features other notable names, including Golden State Warrior's basketball player Stephen Curry, former NBA player Shaquille O'Neal, baseball player David Ortiz, and tennis player Naomi Osaka.
In addition to sports personalities, the list of celebrities affected by FTX's collapse includes renowned comedian Larry David, entrepreneur Kevin O'Leary, and numerous others.
Tom Brady, a legendary NFL player with seven Super Bowl championships under his belt, made headlines when he joined the FTX crypto exchange as an ambassador in 2021. Alongside his then-wife, Gisele Bündchen, Brady actively promoted the exchange's services.
Not only did he lend his influence, but he also made significant investments in the form of 1.1 million common shares, valued at a staggering $45 million.
Unfortunately, as the exchange encountered insolvency, the value of these shares plummeted, putting Brady's substantial investment at risk of significant loss. Brady is now facing a lawsuit about his promotion of FTX services, further complicating his involvement with the exchange.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.