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Former FTX CEO Sam Bankman-Fried misplaced his total $16 billion fortune in only a few days after his firm filed chapter 11 chapter safety on Friday, however he’s not the one high-profile investor who could lose cash amid FTX’s downturn.
As curiosity in crypto and crypto exchanges exploded in recent times, extra excessive profile people like skilled athletes and different leisure personalities joined monetary establishments in investing in FTX.
A kind of athletes is Tampa Bay Buccaneers quarterback Tom Brady.
Only a few months after profitable his seventh Tremendous Bowl in 2021, Brady and his then-wife Gisele Bündchen had been every given fairness stake in FTX, along with receiving some crypto. Brady served as an envoy for the corporate and Bündchen was FTX’s Environmental & Social Initiatives Advisor. The 2 additionally starred in a number of TV commercials for FTX.
“It’s an extremely thrilling time within the crypto-world and Sam and the revolutionary FTX staff proceed to open my eyes to the infinite prospects,” Brady mentioned in 2021. “This specific alternative confirmed us the significance of training individuals in regards to the energy of crypto whereas concurrently giving again to our communities and planet. We’ve got the prospect to create one thing actually particular right here, and I can’t wait to see what we’re in a position to do collectively.”
It’s not clear how a lot fairness Brady and Bündchen acquired in 2021, however FTX raised capital at a $32 billion valuation a couple of months after the announcement of the deal.
See additionally: FTX filed for Chapter 11 chapter. Right here’s what account holders ought to learn about this ‘very messy and sophisticated chapter case’
An analogous story might be advised for Steph Curry of the NBA champion Golden State Warriors, who was made a worldwide ambassador for FTX and likewise given an fairness stake within the firm in 2021.
It’s unclear what’s going to occur to the cash buyers put into in FTX, however their fairness might be worn out by the chapter submitting.
Representatives for Curry, Brady, Bündchen and FTX didn’t reply to MarketWatch’s request for touch upon this story.
Different high-profile buyers in FTX had been Jacksonville Jaguars quarterback Trevor Lawrence, MLB’s Shohei Ohtani, tennis star Naomi Osaka and Sharktank’s Kevin O’Leary.
Moreover, Main League Baseball has a advertising and marketing take care of FTX the place umpires the place an FTX emblem on their shirts throughout video games, and the NBA’s Miami Warmth renamed their residence stadium “FTX Area” again in 2021. In contrast to bulletins for the athletes listed above, the press releases for the MLB and Warmth didn’t embrace point out of an fairness stake in FTX.
In accordance with an inventory compiled by the New York Instances, monetary teams that backed FTX embrace: Third Level Ventures, Tiger World, Sequoia Capital, SoftBank
9984,
and BlackRock
BLK,
FTX paused withdrawals earlier this week amid a multibillion liquidity crunch. At one level, rival crypto alternate Binance was enthusiastic about a takeover of FTX, however determined in opposition to the transfer and referred to as FTX’s monetary issues “past our management or means to assist.”
See additionally: It is advisable perceive the FTX debacle even you probably have no investments in crypto
“There’s movie star CEOs on this area in addition to movie star crypto entrepreneurs,” SEC chairman Gary Gensler mentioned on CNBC this week after information broke of FTX’s liquidity points however previous to the chapter announcement. “The general public can fall prey to their promotions, their advertising and marketing and the like.”
In a viral Twitter thread on Friday, Bankman-Fried apologized for FTX’s current state of affairs. “I’m actually sorry, once more, that we ended up right here,” he mentioned. “Hopefully issues can discover a technique to get better.”
Bitcoin
BTCUSD,
costs briefly dropped to their lowest degree in two years this week, and the worth for ether
ETHUSD,
is down 73.22% during the last yr.
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