Tom Brady's Costly Crypto Bet: Millions Lost

Tom Brady, the seven-time Super Bowl champion, lost a reported $30 million in the collapse of the cryptocurrency company FTX. Brady was a leading ambassador for FTX and received his compensation in the form of FTX stock, which is now worthless. He is also facing a lawsuit from FTX investors who want repayment from celebrity endorsers.

Tom Brady lost $30 million in the FTX collapse

Tom Brady, the seven-time Super Bowl champion, lost $30 million in the collapse of the cryptocurrency company FTX. Brady was a leading ambassador for FTX and had received his compensation in the form of FTX stock, which is now worthless.

Brady had invested $30 million in FTX and was an "ambassador" for the cryptocurrency exchange. He had appeared in commercials for the company and pitched it in television ads and at its conferences. In addition to the financial loss, Brady also faces legal issues, as he is being sued by FTX investors who want repayment from celebrity endorsers.

The retired NFL quarterback is not alone in his losses, as his then-wife, Gisele Bundchen, also lost $18 million in FTX stock. Bundchen, a supermodel, had received her compensation for promoting the brand alongside Brady in the form of stock as well.

FTX filed for bankruptcy in November 2022, and its former CEO, Sam Bankman-Fried, was found guilty of fraud, embezzlement, and criminal conspiracy. He was sentenced to 25 years in prison for his role in what was deemed "one of the biggest financial frauds in American history."

The collapse of FTX has left many investors and customers scrambling to recoup their funds, and it has also damaged the reputation of those who promoted the brand.

Brady's ex-wife Gisele Bundchen lost $18 million

Brady's ex-wife, Gisele Bundchen, lost $18 million in the collapse of the cryptocurrency company FTX. Bundchen, a supermodel, received $18 million in now-worthless FTX stock for her work promoting the company. She and Brady, who were one of the biggest shareholders of the company, have been accused of not doing any 'due diligence' before endorsing FTX.

Bundchen was brought on as an "environmental and social initiatives advisor" for FTX in 2021. She and Brady appeared in commercials, made social media posts, and spoke at conferences alongside the company's CEO, Sam Bankman-Fried.

Following the collapse of FTX, Bundchen told Vanity Fair that she felt "blindsided" and was "so sorry" for what had happened. She also shifted some blame onto her financial advisors, who had made FTX sound like a "great thing."

In addition to their financial losses, Brady and Bundchen also face legal peril. They are being sued by FTX investors who want repayment from celebrity endorsers. The couple may also have to pay taxes on their now-worthless FTX stock.

Other celebrities lost money in the FTX collapse

The collapse of the FTX crypto empire saw many celebrities lose a lot of money. Tom Brady, the former NFL quarterback, lost $30 million in the collapse. Brady was an "ambassador" for FTX and received $30 million in now-worthless stock for promoting the company.

Other celebrities also lost money in the FTX collapse. Brady's then-wife, Gisele Bundchen, lost $18 million. Bundchen, a supermodel, owned 680,000 FTX shares, which were valued at about $25 million. She promoted the company alongside Brady and was also sued by FTX investors.

Basketball Hall of Famer Shaquille O'Neal, tennis player Naomi Osaka, and Golden State Warriors player Stephen Curry were also sued by FTX investors. "Shark Tank" star Kevin O'Leary lost $1 million, and New England Patriots owner Robert Kraft lost an eight-figure investment.

FTX's collapse caused a ripple effect across the cryptocurrency markets, with the price of Bitcoin falling to its lowest level in two years. The company's former CEO, Sam Bankman-Fried, was convicted of defrauding customers and lenders and sentenced to 25 years in prison.

Brady faces a lawsuit from FTX investors

Tom Brady, the seven-time Super Bowl champion, lost $30 million in the collapse of the cryptocurrency company FTX, for which he served as an "ambassador". The retired NFL quarterback had received $30 million in now-worthless stock for his work promoting the company in television ads. FTX filed for bankruptcy in November 2022, and its former CEO, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and conspiracy charges.

Brady, along with his then-wife Gisele Bundchen, is now being sued by FTX investors who are seeking repayment from celebrity endorsers. Bundchen received $18 million in FTX stock. The lawsuit, filed in federal court in Florida, alleges that "none of these defendants performed any due diligence prior to marketing these FTX products to the public". Other celebrities sued in the FTX case include Shaquille O'Neal, Larry David, Naomi Osaka, and Steph Curry.

The lawsuit against Brady and the other celebrity endorsers argues that they made numerous misrepresentations and omissions...in order to induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme. The plaintiffs allege that the celebrities violated Florida securities and consumer-protection laws by failing to disclose their financial agreements with FTX and not conducting due diligence before promoting the company.

In addition to the financial losses, Brady may face further challenges in the form of tax payments on his now-worthless FTX stock. Despite these setbacks, Brady is likely to be financially secure, having earned over $300 million in NFL salaries and additional income from endorsements and investments.

The former CEO of FTX was sentenced to 25 years in prison

Tom Brady, the seven-time Super Bowl champion, lost $30 million in the collapse of the cryptocurrency company FTX, for which he served as an "ambassador". He had received $30 million in now-worthless stock for his work pitching the company.

FTX's former CEO, Sam Bankman-Fried, was sentenced to 25 years in prison and ordered to forfeit $11 billion. Bankman-Fried was convicted of fraud and related crimes in November 2023. He founded the FTX cryptocurrency exchange and was ranked the 41st-richest American in the Forbes 400 at the peak of his net worth.

In November 2022, as evidence of potential fraud began to surface, depositors quickly withdrew their assets, forcing the company into bankruptcy. Bankman-Fried was arrested in the Bahamas and extradited to the United States, where he faced seven criminal charges, including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance law violations.

The trial began on October 3, 2023, and Bankman-Fried was found guilty on all seven counts of fraud and conspiracy. The sentencing hearing took place on March 28, 2024, where he was sentenced to 25 years in prison. Federal prosecutors had sought a sentence of 40 to 50 years, while his defense lawyer argued for a sentence of less than 5-1/4 years.

Bankman-Fried acknowledged the suffering of FTX customers and apologized to his former colleagues, but he did not admit to any criminal wrongdoing. He has vowed to appeal his conviction and sentence.

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