Tom Brady's Bitcoin Bet: Millions Invested

Tom Brady is a retired NFL quarterback who has made headlines for his involvement with the cryptocurrency exchange FTX. Brady served as a leading ambassador for FTX and actively promoted the platform through advertisements and conferences. In late 2022, FTX filed for bankruptcy, and its founder, Sam Bankman-Fried, was sentenced to 25 years in prison for orchestrating a multibillion-dollar crypto fraud. As a result of the collapse, Tom Brady reportedly lost $30 million, and he may face further financial losses in the form of tax payments and a lawsuit from aggrieved FTX customers.

Tom Brady lost $30 million in the FTX crypto crash

Tom Brady, the seven-time Super Bowl champion and former Tampa Bay Buccaneers quarterback, lost $30 million in the FTX crypto crash. Brady was a leading ambassador for the now-bankrupt cryptocurrency exchange, FTX. He received $30 million in now-worthless stock for his work pitching the company in television ads and at its conferences.

Brady's endorsement deal with FTX required him to pay taxes on his now-defunct FTX stock, and he is also facing a lawsuit from FTX investors who want repayment from celebrity endorsers. The lawsuit argues that the celebrities who promoted the brand made "numerous misrepresentations and omissions ... in order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme."

In addition to his losses in the FTX crash, Brady's NFT startup, Autograph, has struggled in the wake of the crypto crash and was forced to slash nearly a third of its workforce in May. However, Brady is likely to be financially secure despite these losses, as he earned over $300 million in NFL salaries over 23 years and has made significant earnings from endorsement deals and off-the-field investments.

Brady's ex-wife, Gisele Bundchen, also lost a significant portion of her wealth in the FTX crash. Bundchen reportedly owned 680,000 FTX shares, valued at about $18 million. Together, the pair lost a combined $48 million in the crash.

He was a leading ambassador for FTX

Tom Brady was a leading ambassador for FTX, the now-bankrupt cryptocurrency exchange. The seven-time Super Bowl champion was paid $30 million in FTX stock as part of an endorsement agreement he signed in 2021. Brady promoted the brand in various ways, including appearing in several promotional ads with his now ex-wife, Gisele Bündchen, who was also paid in FTX stock.

Brady's role as an ambassador for FTX included appearing in a Super Bowl commercial, on billboards, and at the company's conference in the Bahamas. He pitched the company as "'the most trusted' institution in the loosely regulated world of crypto." Unfortunately for Brady, his endorsement of FTX has led to financial and legal troubles. Following the collapse of FTX, Brady lost the $30 million he had been paid in stock, and he may face further losses in the form of tax payments on that stock.

In addition to his financial losses, Brady is among a group of celebrity defendants being sued by FTX customers seeking compensation from those who endorsed the exchange. The lawsuit argues that the celebrities made misrepresentations and omissions to induce confidence and drive consumers to invest in what was ultimately a Ponzi scheme. Brady's ex-wife, Bündchen, is also being sued as part of the case.

The fallout from the FTX collapse has raised questions about the responsibility of celebrity endorsers and the due diligence they should undertake when promoting a product. It remains to be seen whether Brady and the other celebrities involved will be held legally liable for their endorsements of FTX.

Brady and his ex-wife Gisele Bundchen lost $48 million combined

Tom Brady, the former quarterback for the Tampa Bay Buccaneers, was a leading ambassador for FTX, the now-bankrupt cryptocurrency exchange. In 2021, he and his then-wife, Gisele Bundchen, signed an endorsement deal with FTX, receiving equity in the company and a signing bonus in cryptocurrency. Unfortunately, in late 2022, FTX collapsed, and it was revealed that the company's founder, Sam Bankman-Fried, had been providing false information to investors. This resulted in significant losses for many people, including Brady and Bundchen.

Before the collapse, FTX was valued at $32 billion, which included the $48 million in shares held by Brady and Bundchen. However, after the crash, those shares became worthless. Brady reportedly lost $30 million, while Bundchen lost $18 million, for a combined loss of $48 million. Despite their substantial losses, both Brady and Bundchen are incredibly wealthy, with a combined net worth of $650 million.

In addition to their financial losses, Brady and Bundchen are facing legal repercussions. They are named in a class-action lawsuit filed by FTX investors who are seeking repayment from celebrity endorsers. The lawsuit alleges that the celebrities who promoted FTX failed to perform due diligence and made misrepresentations to induce confidence and drive investments in what was ultimately a Ponzi scheme.

The collapse of FTX and the subsequent losses for Brady and Bundchen highlight the risks associated with investing in cryptocurrencies and the importance of conducting thorough research before endorsing or investing in any financial venture. While Brady and Bundchen's financial losses may not significantly impact their overall wealth, it serves as a stark reminder of the volatile nature of the cryptocurrency market and the potential consequences of such investments.

He was paid $30 million for his partnership with FTX

Tom Brady, the legendary NFL quarterback, was a leading ambassador for FTX, the now-bankrupt cryptocurrency exchange. In 2021, he entered a partnership with FTX and its CEO, Sam Bankman-Fried. As part of this deal, Brady received $30 million in FTX stock for promoting the company in television ads and at its conferences.

Brady's endorsement of FTX was a significant boost for the company, as he was the top ambassador for the brand. His involvement helped to legitimise the platform and encourage others to invest. At the time, Brady released a statement saying, "Sam and the revolutionary FTX team continue to open my eyes to the endless possibilities" of crypto.

However, the partnership ended in disaster when FTX collapsed in late 2022. The crash exposed an $8 billion hole in FTX's accounts, and Brady's investment is now worthless. The former NFL star lost approximately $30 million in the crypto crash, and he may face further losses in the form of tax payments and a lawsuit from aggrieved FTX customers.

Brady's crypto woes don't end with FTX. He also co-founded Autograph, an NFT startup that has struggled in the wake of the broader crypto crash. The company slashed nearly a third of its workforce in May 2023. Despite these losses, Brady is likely to be financially secure due to his earnings from the NFL, endorsement deals, and other investments.

Brady is facing a class-action lawsuit from FTX investors

Tom Brady, the seven-time Super Bowl champion and former Tampa Bay Buccaneers quarterback, lost a reported $30 million in the cryptocurrency crash of 2022. Brady was a leading ambassador for the now-bankrupt cryptocurrency exchange FTX. He was paid a reported $30 million for his partnership with the company, which consisted of equity in the company and is now worthless. Brady's ex-wife, Gisele Bundchen, also lost $18 million in the crash.

Brady is now facing a class-action lawsuit from FTX investors who want repayment from celebrity endorsers. The lawsuit, filed in federal court in Florida, alleges that Brady and other celebrities made numerous misrepresentations and omissions to induce confidence and drive consumers to invest in what was ultimately a Ponzi scheme. The lawsuit states that "none of these defendants performed any due diligence prior to marketing these FTX products to the public."

The lawsuit names several other celebrities, including basketball player Shaquille O'Neal, tennis player Naomi Osaka, and comedian Larry David. Before the collapse, FTX was valued at $32 billion, including the $48 million in shares held by Brady and Bundchen. Now, those shares have no value.

In addition to the financial loss, Brady's endorsement of FTX has also damaged his reputation. During a live roast of Brady on Netflix, comedian Nikki Glaser joked about his investment in the company, saying, "Tom, how did you fall for that? I mean, even Gronk was like me know that's not real money."

While Brady's financial losses from the FTX collapse are significant, they are unlikely to affect him as much as they would an everyday person. Brady earned over $300 million in NFL salaries over 23 years and has made even more from endorsement deals and other investments. He also signed a $375 million contract with Fox Sports to work as an analyst.

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