Tom Brady's Cryptocurrency Investments: Did He Make The Move?

Tom Brady, the legendary NFL quarterback, has been involved in several controversies, including Deflategate and his divorce from Gisele Bündchen. However, one of the most notable controversies surrounds his involvement with the cryptocurrency exchange FTX. Brady served as a brand ambassador for FTX and actively promoted it to his fans, including through commercials and live events with the company's founder, Sam Bankman-Fried. In 2021, Brady and his then-wife, Bündchen, announced they had taken an equity stake in FTX, with Brady becoming a brand ambassador and Bündchen an environmental and social initiatives advisor. However, in 2022, FTX filed for bankruptcy, causing Brady to lose a significant portion of his investment. The collapse of FTX led to lawsuits and ridicule directed at Brady, with some accusing him of luring fans into a bad deal.

Tom Brady's $30 million fee for promoting FTX

Tom Brady, the retired NFL quarterback, was paid $30 million to promote the cryptocurrency exchange FTX. Brady was an "ambassador" for FTX and frequently appeared in commercials for the company. In one such commercial, an enthusiastic Brady is seen dialling up everyone in his contact list to pitch crypto trading on FTX, repeatedly asking, "You in?".

Brady received most of this $30 million fee in the form of FTX stock. Under the agreement he made with FTX in 2021, he received $30 million in now-worthless stock for his work pitching the company in television ads and at its conference.

FTX filed for bankruptcy in November 2022 after its founder, Sam Bankman-Fried, was accused of orchestrating one of the biggest financial frauds in US history. Bankman-Fried is facing federal fraud-related charges, including wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

As a result of the collapse of FTX, Brady lost the $30 million he had invested in the company. He is now part of a lawsuit, alongside other celebrities such as Shaquille O'Neal, Larry David, and Gisele Bundchen, who was Brady's wife at the time and who herself lost $18 million in FTX stock. The lawsuit has been filed by FTX investors who want repayment from celebrity endorsers.

Brady's involvement in lawsuits following FTX's collapse

Tom Brady was one of the many celebrities who endorsed the FTX cryptocurrency exchange. Following the collapse of FTX, Brady, along with other celebrities, has been named in class-action lawsuits filed by investors who lost their money.

Michael Livieratos, a 56-year-old legal clerk and Patriots fan, is one such investor who lost $30,000 in the FTX collapse. He is now a plaintiff in a class-action lawsuit against Brady and other celebrity endorsers of FTX. Livieratos claims that he decided to invest in FTX after seeing Brady in a commercial for the cryptocurrency platform. He alleges that Brady and the other celebrity endorsers are responsible for luring him and other investors into a bad deal.

The lawsuit argues that FTX's interest-bearing accounts were securities and that Brady and the other promoters failed to disclose the details of their financial agreements with FTX, as required by law. The plaintiffs allege that these celebrities violated Florida securities and consumer-protection laws, resulting in investor losses.

Brady has denied any wrongdoing and has filed a motion to dismiss the case. In his defence, he argues that his promotion of FTX did not involve the sale or solicitation of the alleged securities and that he had no knowledge of FTX's fraud. His lawyers also claim that "no reasonable consumer would confuse these promotions for anything other than paid endorsements."

The outcome of the lawsuits remains to be seen, and it is unclear whether Brady and the other celebrities will be held liable for investor losses. The cases raise questions about the responsibility of celebrity endorsers and the regulation of the cryptocurrency industry.

The impact of FTX's collapse on Brady's finances

Tom Brady was a prominent endorser of FTX, a cryptocurrency exchange platform. He was paid $55 million to promote the company, receiving $30 million in stock and his then-wife Gisele Bundchen $18 million.

Following the collapse of FTX, Brady lost $30 million. The company had paid him in stock, which became worthless when FTX filed for bankruptcy in November 2022.

Brady is now facing legal repercussions, as he is being sued by FTX investors who are seeking repayment from celebrity endorsers. The lawsuit claims that Brady and other celebrities participated in deceptive strategies to "induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme".

In addition to the financial losses, Brady's reputation has also been impacted by the FTX scandal. He has been criticised for promoting risky and complex financial products to his fans without disclosing the full details of his endorsement deal.

The exact details of Brady's endorsement deal with FTX are still unclear. It is unknown how much he and Bundchen paid for their stakes in the company, but it is estimated that they may have lost up to $70 million.

The collapse of FTX has had a significant impact on Brady's finances, with losses totalling in the millions. The legal repercussions and damage to his reputation may also have long-lasting effects on his future earnings and endorsement deals.

Brady's ex-wife Gisele Bündchen's involvement with FTX

Gisele Bündchen, ex-wife of Tom Brady, was also involved with FTX. Bündchen was head of FTX's environmental and social initiatives. She was also a major equity holder in the company, owning roughly 680,000 FTX shares before the company went bankrupt, equalling an estimated loss of $25 million.

Bündchen and Brady were married at the time of their investments and shot several advertisements together for the company. However, Brady owned almost twice as many shares as Bündchen—over 1.1 million—resulting in an estimated loss of $45 million.

Following the collapse of FTX, Bündchen and Brady were named in a class-action lawsuit against the company for promoting FTX. The lawsuit was filed by Edwin Garrison, an FTX retail investor, who claimed his crypto account went bankrupt after "being exposed to" the celebrity endorsements. The pair are also included in a separate state class action in Florida, which argues that the celebrities could be responsible for investor losses under "blue sky" laws that ban the promotion of unregistered securities.

Bündchen broke her silence on the FTX collapse in an interview with Vanity Fair, stating that she was ""blindsided" and believed FTX to be a "sound and great thing" based on the advice of her financial advisors. She expressed regret for what happened and hoped for justice to be served.

Brady's roast on Netflix

NFL legend Tom Brady has been involved in a cryptocurrency scandal, which has resulted in him facing lawsuits. Brady was paid a large sum of money to promote the FTX cryptocurrency exchange, which later collapsed. This has led to him being sued by people who lost money when FTX filed for bankruptcy.

Now, onto Brady's roast on Netflix. The roast, hosted by Kevin Hart, featured an all-star lineup of comedians and celebrities, including Jeff Ross, Nikki Glaser, and Will Ferrell. The premise of the roast was to make jokes at Brady's expense, and while he initially found it enjoyable, he later regretted putting his personal life under the spotlight, especially the impact it had on his children.

The roast, titled "G.R.O.A.T. The Greatest Roast Of All Time," was part of the Netflix Is A Joke Festival 2024. It was an evening of comedy and friendly insults, with Brady being the main target. While Brady may have had second thoughts about participating, it provided an opportunity for him to laugh at himself and celebrate his success with his friends and frenemies.

The roast included jokes about Brady's career, personal life, and even his divorce from supermodel Gisele Bündchen. It's reported that both Bündchen and his other ex-wife, Bridget Moynahan, were upset about how their families were portrayed during the roast. As a result, Brady found himself in the position of having to apologise to them.

Despite the backlash, the roast was well-received by the audience and provided a unique perspective on Brady's life and career. It offered a light-hearted take on his successes and failures, with Brady being a good sport about the jokes, at least initially.

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