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Crypto Founder Tiantian Kullander & His Mysterious Death at Age 30
Table of Contents Tiantian Kullander, who co-founded the crypto company dealing with digital assets named Amber Group in Hong Kong, passed away in his sleep
How much did Tom Brady put into FTX, and what happened to his share?
Well, this article tries to delve into the details and address them.
NFL Legend Tom Brady had an extremely harsh year in 2022. From his worst-performing record post-retirement to divorce, the FTX collapse adds insult to injury.
According to Insider, The Tampa Bay Buccaneers quarterback Tom Brady, Gisele Bündchen, the supermodel, and New England Patriots owner Robert Kraft’s KPC Venture Capital were some of the many hotshot investors who are likely to lose their considerable investments in one of the largest cryptocurrency exchanges by volume, FTX following their epic collapse.
Various other celebrities and top-notch hedge fund managers, including “Mr. Wonderful” Kevin O’Leary of Shark Tank, tennis star Naomi Osaka, Shaquille O’Neal, Udonis Haslem, David Ortiz, Stephen Curry, Larry David, Shohei Ohtani, Trevor Lawrence, etc., were either commercially involved or had substantial investments in FTX. They are all set to lose everything in it.
Tom Brady put at least $45 million or more into acquiring 1.1 million FTX common shares as per the new bankruptcy filing, as reported by Sportsnaut.
The NFL superstar Tom Brady’s face became synonymous with FTX as he was appointed its brand ambassador.
The financial advisors thoroughly checked the financials of FTX and couldn’t identify any wrongdoings or explicit issues. According to them, the books were spotless.
Based on this guidance by the advisors, the then-couple Brady and Gisele invested heavily in FTX shares.
When they invested, there was a lot of FOMO going on regarding FTX. The positive attitude about FTX in the crypto sphere and the media further helped remove any doubt from their minds about investing and associating themselves with FTX.
When everything seemed hunky-dory, the FTX token crashed, and all investors suffered heavy losses with their crypto investment.
It all started when somebody reported that Alameda Research, the sister concern of FTX that focuses on crypto trading, was holding most of its portfolio in FTX’s native token FTT.
It was followed by Binance announcing that it would not support such dubious practices and began selling off its FTT holdings to protect its customers.
It spiraled into a highly fearful market sentiment for FTX and its crypto tokens FTT and the price went down drastically as a massive solvency crisis was created.
Finally, this led to FTX filing for bankruptcy in Nov. 2022, and then in December 2022, FTX founder Sam Bankman-Fried was arrested in the Bahamas with multiple counts of wire fraud and money laundering. He was later extradited to the US as he agreed to the proposal.
The disgraced founder of FTX knowingly used customer funds to the tune of $4 billion to cover up Alameda Research’s balance sheet.
As FTX filed for bankruptcy, retail investors, major shareholders, and institutional investors faced major losses on their investments. Tom Brady and Gisele Bündchen were no different. They were potentially looking to lose everything they put into FTX. Sequoia Capital suffered the greatest loss with its $200 million investment.
It was terrible for both of them because it was not only an equity deal, but they were endorsers of the brand. They even appeared in commercials for FTX.
Although as part of the bankruptcy proceedings, CNN reports that $5 billion has been recovered until now, they will unlikely get anything back as the retail investors prioritize refunds before the shareholders.
It was not only a financial loss for the couple as they were going through a rough patch as they divorced after being married for 13 years. After declaring retirement, Brady returned to the field once again but had a terrible start. The FTX collapse was the icing on the cake.
Bankruptcy documents reveal that Tom Brady owns 1.1 million FTX shares, while the supermodel and ex-wife of Brady, Gisele, is said to have approximately 700,000 FTX shares.
Apart from the commercials, Bündchen also appeared in Vogue, discussing the collaboration of Crypto and how she was helping FTX donate billions of dollars.
Although the amount invested and the corresponding losses have not been made public, it is calculated to be around $84 million for the couple, with Brady’s portion accounting for almost $45 million.
As Caroline Ellison and former CTO of FTX, Gary Wong, were charged with defrauding investors of the crypto exchange FTX; SEC also highlights the role played by the celebrities, including NFL phenomenon Tom Brady and basketball star Steph Curry as they filed their complaint in New York.
They reflected that these trustworthy public figures played an integral part in whitewashing the brand’s image and portraying FTX as the cleanest brand in Crypto.
For example, Brady mentioned in a press release that it is an exciting time to be associated with crypto and SBF.
His partnership with FTX allowed him to learn about the endless possibilities in crypto, educate people about crypto’s power, and give back to society.
They mentioned that both Brady and Curry might become witnesses in the investigation and may even be held liable for their actions.
Many celebs, including Brady and Curry, were identified as defendants in a class-action lawsuit by Edwin Garrison, represented by heavyweight lawyers Adam Moskowitz and David Boies. An additional lawsuit was filed against Steph Curry because of the involvement of FTX and the parent of the BAYC NFT series.
Although, as per law, anyone who is a brand ambassador or an endorser of a brand cannot be held liable for any illegal acts committed by that brand, it is believed that both Brady and Curry were much more well-informed regarding the internal situation of FTX as compared to the retail investors.
If FTX’s accounts are proven to be securities, then some laws prohibit anybody from promoting unregistered securities. In that case, the celebs may be roped in for breaking the law. However, FTX has held on to the stance that their digital assets were not securities.
It is also perceived that they influenced their fans and people in general with the help of their public stature to invest in the crypto platform FTX, which might be considered as financial advice.
However, these celebs can always defend themselves by saying they had no idea about the organization’s internal operations and had no ill intentions.
They can further support this claim with the multimillion-dollar loss they incurred due to the collapse of FTX, which is considered “One of the biggest financial frauds in American history.”
Apart from this, FTX branding was removed from the home arena of the Miami Heat following a ruling by a federal bankruptcy judge.
Yes, FTX, one of the largest cryptocurrency exchanges, used to offer to trade and invest in US-listed securities to US consumers. It also included stocks and ETFs. The service was provided via the FTX crypto exchange, which integrated it with crypto trading.
NFL legend Tom Brady is the richest quarterback in the history of the NFL, with a net worth of approximately $512 million. He earned a whopping $332 million during his stint as an NFL player for 23 seasons at New England Patriots and then Tampa Bay Buccaneers.
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The whole Tom Brady FTX fiasco explains that investors should always be careful before investing and not blindly follow influencers who are not crypto experts.
They should not blindly invest in anything, be it crypto or stocks or anything else, just because their idols or celebs who they consider role models endorsed them. People should always do thorough research and then take the help of financial advisors if necessary before committing a substantial amount of money to it.
Whether these celebs had bad intentions is immaterial as they won’t be there when an ordinary retail investor loses money. It has also put a question mark on many people’s mind about the future of cryptocurrency especially regarding their safety and their propensity to risk. So, the learning is that you always DYOR or Do Your Own Research before making investment decisions.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author’s opinions are their own and should not be taken as a recommendation to invest in any particular product or service. It is strongly advised that you consult a financial advisor before making investment decisions. Investing always carries risk, and it is up to each individual to consider their options and make informed choices carefully.
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