Tom Brady's Bitcoin Bet: Millions Invested, Huge Returns?

Tom Brady is a retired American football player who was a leading ambassador for the cryptocurrency exchange FTX. In 2021, he and his then-wife Gisele Bundchen announced a partnership with FTX and its CEO, Sam Bankman-Fried. The couple received an equity stake in the company and cryptocurrency in return for promoting the brand. However, in late 2022, FTX collapsed, and it was revealed that Bankman-Fried had misled investors. As a result, Brady reportedly lost a significant amount of money, with estimates ranging from $30 million to $45 million. In this paragraph, we will explore how much money Tom Brady invested in Bitcoin and the impact of the FTX collapse on his finances.

Tom Brady lost $30 million in the FTX crypto crash

Tom Brady lost a staggering $30 million in the FTX crypto crash. The seven-time Super Bowl champion was a leading ambassador for the now-bankrupt cryptocurrency exchange.

Brady, along with his then-wife Gisele Bundchen, promoted the platform through advertisements and conferences. In June 2021, the couple co-starred in a $20 million ad campaign for FTX, receiving an equity stake in the company and cryptocurrency in return. They were among the biggest individual investors in the company, with Brady owning over 1.1 million common shares of FTX Trading, which equaled about $45 million before the company went bankrupt.

The Tampa Bay Buccaneers quarterback 's multi-million-dollar compensation package for appearing in FTX commercials and promoting the brand consisted "almost entirely of FTX stock", according to the New York Times. Such holdings are now worthless.

The crypto crash has left Brady facing further financial woes and a lawsuit. He co-founded NFT startup Autograph, which has struggled in the wake of the crash and slashed nearly a third of its workforce in May. Brady is also among a handful of celebrity defendants in a class-action lawsuit filed by aggrieved FTX customers, who argue that the celebrities who promoted the brand made misrepresentations to induce confidence and drive consumers to invest in what was ultimately a Ponzi scheme.

He may lose more money in the coming months

Tom Brady reportedly lost $30 million in the cryptocurrency crash involving FTX, a company he endorsed as a brand ambassador. Brady's compensation package for appearing in FTX commercials and promoting the brand was worth millions and consisted "almost entirely of FTX stock", which is now worthless.

The retired NFL star may lose more money in the coming months due to several factors. Firstly, Brady is facing a class-action lawsuit filed by aggrieved FTX customers. The investors argue that celebrities who promoted the brand made misrepresentations and omissions to induce confidence and drive investments in what turned out to be a Ponzi scheme. If the lawsuit is successful, Brady could be liable for significant financial damages.

Secondly, Brady's endorsement deal with FTX likely had tax implications. As per The New York Times, he may be required to pay taxes on his now-worthless FTX stock, resulting in further financial losses.

Additionally, Brady co-founded Autograph, an NFT startup that has struggled in the wake of the crypto crash. The company slashed nearly a third of its workforce in May 2023, indicating that Brady's investment in this venture may also result in further losses.

While Brady's substantial earnings from his NFL career and other endorsements may cushion the financial blow, the potential losses from the FTX collapse could indeed impact his net worth significantly.

Brady's endorsement deal was worth $375 million

Tom Brady lost a significant amount of money in the FTX cryptocurrency crash. The former NFL quarterback was a leading ambassador for the now-bankrupt cryptocurrency exchange.

Brady and his ex-wife, supermodel Gisele Bundchen, were early investors in FTX. They first announced a partnership with the company in 2020 and signed an endorsement deal in 2021. The deal gave them equity in FTX and a signing bonus paid in cryptocurrency. The couple appeared in several advertisements for the company, including a $20 million ad campaign.

Brady's endorsement deal with FTX was worth $375 million. He received 1,144,861 common shares of FTX, while Bundchen received 686,761 shares. These investments are now essentially worthless, as FTX filed for bankruptcy in November 2022. The company's collapse was due to a liquidity emergency that left investors unable to access their funds.

The exact amount that Brady lost in the crash is unclear, but it is estimated to be around $30 million. He may also face additional losses in the form of tax payments and a lawsuit from aggrieved FTX customers. Despite these losses, Brady is still financially secure, having earned over $473 million during his NFL career from salaries and endorsements.

In addition to his investments in FTX, Brady also co-founded the NFT startup Autograph, which has struggled in the wake of the crypto crash.

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

In 2021, Tom Brady and his then-wife Gisele Bundchen became ambassadors for the cryptocurrency exchange FTX, founded by Sam Bankman-Fried. The couple co-starred in a $20 million ad campaign for FTX and received an equity stake in the company and cryptocurrency in return. They also appeared in several promotional ads together.

In November 2022, FTX filed for bankruptcy after its founder was charged with fraud, money laundering, and other monetary crimes. This resulted in significant losses for investors, including Brady and Bundchen, who were among the company's largest individual equity holders. Brady owned over 1.1 million common shares of FTX Trading, which were worth about $45 million before the company went bankrupt. Bundchen held 680,000 to 700,000 FTX shares, valued at approximately $18 million to $25 million.

As a result of the FTX collapse, Brady and Bundchen lost a combined $48 million. Brady's losses amounted to $30 million, while Bundchen's losses were between $18 million and $25 million. This setback is unlikely to have a significant impact on the couple's overall financial situation, given their substantial wealth. However, it serves as a reminder of the risks associated with investing in volatile assets like cryptocurrency and the importance of conducting thorough due diligence.

Brady is facing a class-action lawsuit

Tampa Bay Buccaneers quarterback Tom Brady reportedly lost $30 million in the cryptocurrency crash that occurred in late 2022. Brady was a leading ambassador for the now-bankrupt cryptocurrency exchange FTX, and he had invested a significant amount of money in the company.

Brady is now facing a class-action lawsuit filed by aggrieved FTX customers. The lawsuit claims that the celebrities who endorsed FTX, including Brady, participated in deceptive strategies to "induce confidence and to drive consumers to invest in what was ultimately a Ponzi scheme". The lawsuit argues that these celebrity defendants made numerous misrepresentations and omissions, which led to significant losses for investors when the company collapsed.

The lawsuit against Brady and the other celebrity endorsers of FTX highlights the risks associated with investing in cryptocurrency and the potential consequences for those who promote these platforms. While the lawsuit is ongoing, it is clear that Brady and other investors suffered significant financial losses in the FTX collapse.

In addition to the class-action lawsuit, Brady may face further financial hits in the form of tax payments on his now-worthless FTX stock. As a result, the former NFL star could end up losing even more money in the coming months, despite his substantial career earnings from the NFL and endorsement deals.

The FTX collapse has had widespread repercussions, affecting not only investors like Brady but also customers who lost access to their funds. The company's founder, Sam Bankman-Fried, was sentenced to 25 years in prison for his role in the fraud, which left a massive $8 billion hole in FTX's accounts.

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