By Bitcoinist - 9 months ago - Reading Time: 2 minutes
FTX Collapse Wiped Out Tom Brady’s $30 Million Investment: Report
The FTX collapse dealt a devastating blow to Tom Brady, the popular NFL quarterback, causing him to suffer significant financial losses. Known for his role as an ambassador for FTX, Brady frequently appeared in their commercials, endorsing the cryptocurrency company.
According to The New York Times, he had struck a lucrative deal with the now-defunct organization, receiving a hefty payment of $30 million. The majority of this compensation was in the form of FTX stock, a risky yet potentially rewarding investment.
To compound the situation, Brady’s former spouse, supermodel Gisele Bündchen, also received a substantial sum of $18 million worth of FTX stock as part of the agreement. Unfortunately, their fortunes took an unexpected turn when the crypto exchange filed for bankruptcy in November.
Tom Brady’s Urgent Call Amidst The Chaos
Brady reportedly made an urgent phone call to FTX’s head of partnerships, Sina Nader. The gravity of the situation was underscored by the fact that Nader told the NYT, “I never would have expected to decline a call from Tom Brady.” However, at that particular moment, Nader found himself embroiled in a crisis meeting alongside FTX founder Sam Bankman-Fried and other key personnel.
Recognizing the significance of Brady’s call, Nader promptly returned it after the crisis meeting concluded. During their conversation, it became apparent that Brady was deeply “concerned” about the unraveling events surrounding FTX.
A Sporting Partnership Turned Catastrophe
FTX had entangled itself with numerous sports leagues and prominent athletes, including the renowned duo of Brady and Bündchen. The couple’s involvement with FTX extended far beyond endorsements, as they starred in a colossal $20 million advertising campaign, showcasing their support for the company.
Brady’s connection with FTX was further evidenced by his TikTok videos, featuring him alongside FTX founder Sam Bankman-Fried at the company’s luxurious headquarters in the Bahamas. However, these seemingly prosperous connections would soon unravel, plunging both the athletes and the cryptocurrency company into a deep crisis.
Recent developments have taken a grim turn, as investors initiated a class-action lawsuit against Bankman-Fried. This legal action named not only Brady and Bündchen but also other notable sports figures such as Shaquille O’Neal, Stephen Curry, Trevor Lawrence, Naomi Osaka, David Ortiz, and Shohei Ohtani as defendants.
The investors are seeking accountability for the financial losses incurred because of the collapse of the crypto empire.
The repercussions have been profound for Bankman-Fried himself, as his net worth plummeted from an impressive $30 billion to a mere $4 million in the wake of the collapse. The founder’s fall from grace took an even graver turn with the emergence of federal fraud charges, further exacerbating his dire situation.
Featured image: Tom Brady, Gisele Bündchen/Harry How/Getty Images, Jamie McCarthy/Getty Images
Original source: Bitcoinist