Tom Brady's Crypto Investments: What You Need To Know

Tom Brady is a retired American football quarterback, spokesman, and entrepreneur with a net worth of $300 million. In June 2021, Brady and his then-wife, supermodel Gisele Bundchen, became brand ambassadors for the FTX crypto exchange. In the wake of the FTX collapse, it was revealed that Brady received 1,144,861 common shares of FTX, worth approximately $45 million. He is now facing lawsuits from investors who lost money in the collapse, alleging that he promoted unregistered securities. Brady has denied these claims, stating that he had no knowledge of FTX's fraud and that his promotions did not involve the sale or solicitation of securities.

Tom Brady lost $30 million in the FTX collapse

In 2021, Tom Brady, the seven-time Super Bowl champion and Tampa Bay Buccaneers quarterback, became a brand ambassador for the crypto exchange FTX. He appeared in several ads for the company alongside his then-wife, supermodel Gisele Bundchen, and FTX founder Sam Bankman-Fried.

Brady was reportedly paid $55 million to promote FTX, $30 million of which was paid in FTX stock. When FTX collapsed in November 2022, Brady lost the entirety of his $30 million investment.

In the wake of the FTX collapse, it was revealed that Brady owned over 1.1 million common shares of FTX Trading, which were worth about $45 million before the company went bankrupt. While it is unclear how much of his payment for promoting FTX was in stock and how much was in standard U.S. currency, it is likely that Brady lost far more than just the $30 million in stock.

Following the collapse, Brady filed a motion to dismiss a class-action lawsuit against him, arguing that his promotion of FTX did not mention the "allegedly unregistered securities" and that he, too, was harmed by the company's collapse.

Brady and his ex-wife Gisele Bündchen lost a significant portion of their wealth in the FTX exchange

In June 2021, Tom Brady and his then-wife Gisele Bündchen were announced as the newest "brand ambassadors" for the FTX cryptocurrency exchange. Brady, a seven-time Super Bowl champion, expressed his belief in the future of cryptocurrency, stating that he had been discussing it for far longer than just the past month. However, the couple's involvement with FTX proved to be ill-fated.

FTX, founded by Sam Bankman-Fried, collapsed in November 2022, causing a nosedive in the cryptocurrency market. Bankman-Fried was subsequently arrested and extradited to the United States, where he faced charges of money laundering and wire fraud, among other crimes. He was found guilty and sentenced to 25 years in prison for his role in what was deemed "one of the biggest financial frauds in American history."

The fallout from the FTX collapse resulted in significant losses for Brady and Bündchen. Brady had received 1,144,861 common shares of FTX, while Bündchen received 686,761 shares. Using the valuation provided by Kevin O'Leary, another celebrity endorser, each share was worth around $31.25 at some point. This means that Brady's shares were once worth approximately $45 million, while Bündchen's shares were valued at about $25 million. Both of their investments are now worthless.

In addition to the loss of their investments, Brady and Bündchen also faced public scrutiny and potential legal consequences for their association with FTX. They were named in a class-action lawsuit, along with other celebrities, alleging that they had engaged in deceptive strategies to induce consumers to invest in what was ultimately a Ponzi scheme. Brady denied any involvement in the sale or solicitation of the alleged securities and claimed that he had no knowledge of FTX's fraudulent activities.

Brady earned $55 million to promote the FTX cryptocurrency exchange

In June 2021, Tom Brady, along with his then-wife Gisele Bundchen, became a brand ambassador for the FTX cryptocurrency exchange. The couple appeared in several ads for the company, including one featuring its founder, Sam Bankman-Fried.

Author Michael Lewis revealed that Brady was paid $55 million to promote the FTX exchange, with $30 million in stock and $25 million in cash. This made him one of the highest-paid celebrity endorsers of the company, along with other athletes like Stephen Curry, who earned $35 million.

Brady's promotion of FTX was part of a larger strategy by Bankman-Fried to bring legitimacy and visibility to the exchange by associating it with well-known sports figures. However, the partnership ultimately ended in disaster when FTX collapsed in November 2022, causing significant financial losses for investors and endorsers alike.

Following the collapse, it was revealed that Brady had owned over 1.1 million common shares of FTX Trading, worth about $45 million before the bankruptcy. This investment is now worthless, and he also likely lost the cash portion of his endorsement deal. In total, it is estimated that Brady may have lost $50-100 million due to the FTX fallout.

Brady's lawyers argue that no reasonable consumer would confuse these promotions for anything other than paid endorsements

Tom Brady, a retired American football quarterback, has been linked to the FTX cryptocurrency scandal. Brady and his then-wife, Gisele Bundchen, were named as brand ambassadors for FTX in 2021 and appeared in several ads for the company. In the wake of FTX's collapse, it was revealed that Brady received 1,144,861 common shares of FTX, while Bundchen also received shares (686,761).

Following the collapse of FTX, Brady was named in a class-action lawsuit, along with other celebrities and athletes, alleging that they participated in deceptive strategies to "induce confidence and drive consumers to invest in what was ultimately a Ponzi scheme". The lawsuit also claims that the defendants failed to adequately disclose the compensation they received for promoting FTX.

In response to the lawsuit, Brady's lawyers have argued that "no reasonable consumer would confuse these promotions for anything other than paid endorsements". They claim that Brady's promotional efforts on behalf of FTX did not involve the sale or solicitation of securities and that he had no knowledge of FTX's fraud. Brady's lawyers further argue that his general promotion of FTX did not mention the "allegedly unregistered securities" and that the company's collapse "harmed" him as well.

The outcome of the lawsuit remains to be seen, but it has certainly put a spotlight on the involvement of celebrities and athletes in promoting cryptocurrency platforms.

Brady is a big believer in crypto

Tom Brady is a big believer in crypto. The seven-time Super Bowl champion has "definitely" gotten involved in investing in the cryptocurrency market. In a pre-recorded video interview with FTX founder Sam Bankman-Fried, Brady said, "I'm a big believer in [crypto]. I definitely have [gotten involved with any investing in crypto]."

Brady, who played for the Tampa Bay Buccaneers, only recently entered the public crypto sphere, launching a non-fungible token (NFT) platform Autograph and changing his Twitter profile picture to the Bitcoin laser eyes meme. However, he has been discussing cryptocurrency for far longer and even talked about it daily with one of his coaches, who has been investing in crypto for eight to nine months.

While Brady did not share specific details about which crypto assets he invested in, he did receive 1,144,861 common shares of FTX, which were valued at about $45 million before the company went bankrupt. He also appeared in several promotional ads for FTX with his now ex-wife, Gisele Bündchen, who herself lost about $25 million in the FTX collapse.

Brady reportedly lost $30 million in the FTX fallout, as he was paid $30 million in stock by the company. He is also among the sports figures targeted by lawsuits following the crash in crypto markets.

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