Celebrities, Crypto, and Controversy: The Fallout of FTX's Bankruptcy

Rebeca Moen  Jul 08, 2023 00:50  UTC 16:50

2 Min Read

Tom Brady, the quarterback for the New England Patriots and winner of seven Super Bowls, served as an ambassador for the FTX bitcoin and crypto exchange, According to New York Times.

He advertised the new company as the most reliable establishment in the cryptocurrency industry using a variety of platforms, such as a commercial shown during the Super Bowl, billboards, and a conference held by FTX in the Bahamas. FTX represented a considerable portion of Brady's personal wealth.

FTX paid him $30 million as part of an endorsement agreement he signed with the company in 2021; the payment was nearly completely in the form of FTX shares. This arrangement was a component of the contract. Gisele Bundchen, who was his ex-wife and a supermodel, was given FTX shares for 18 million dollars.

FTX has been declared insolvent last year, and its founder, Sam Bankman-Fried, is being investigated for criminal fraud.

Customers of FTX have filed a lawsuit against Brady and Bundchen in an effort to get compensation from the celebrities who endorsed the exchange.

The predicament that Brady and Bundchen are in is representative of a bigger pattern in which celebrities who promoted cryptocurrencies or who invested in them are now dealing with the aftermath of the market for cryptocurrencies.

The list of famous individuals who have been embroiled in FTX controversies, including those related to cryptocurrency, is extensive and includes figures such as Paris Hilton, Snoop Dogg, Reese Witherspoon, Matt Damon, Kim Kardashian, Lindsay Lohan, Jake Paul, Soulja Boy, Lil Yachty, and Shaquille O'Neal.

In addition to these celebrities, FTX also attracted significant investment from institutional investors. Some of the most notable among these include Sequoia Capital, BlackRock, Tiger Global Management, SoftBank, and Temasek.

In 2021, Brady helped start the firm Autograph, which assists renowned persons in the process of selling nonfungible tokens (NFTs).

In a case that accuses celebrities of deceiving investors, Brady and Bundchen are among the celebrities named as defendants.

Larry David, Steph Curry, and Naomi Osaka are some of the other defendants in this case. All three of them supported FTX. Because they did not finalise possible arrangements with FTX, several celebrities, including Taylor Swift and Katy Perry, barely avoided becoming caught up in the crypto debacle.

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