Tom Brady Crypto Ad and FTX Collapse

Tom Brady is one of the most famous athletes in the world. However, he is no stranger to scandals.
For example, an FTX investor filed a lawsuit against founder and former CEO Samuel Bankman-Field and a number of celebrities, including Tom Brady. Have you heard about “Tom Brady crypto?”
It is worth noting that famous lawyers David Boies and Adam Moskowitz filed the lawsuit on behalf of an FTX customer, Edwin Garrison.
Interestingly, Adam Moskowitz is also behind a class-action lawsuit against crypto broker Voyager Digital. As a reminder, Voyager Digital filed for bankruptcy this year.
However, the situation regarding the lawsuit against Bankman-Field, Brady, and others is quite interesting, to say the least. Why?
According to lawyers who aren’t involved in the lawsuit against the FTX crypto exchange, a key question in the case will be whether cryptocurrencies can be treated as securities under the law. According to the Securities and Exchange Commission, cryptocurrencies can be treated as securities. However, the crypto industry doesn’t share the commission’s opinion.
FTX was one of the most popular crypto exchanges in the world. In its heyday, it received endorsements from a number of athletes, including Tom Brady. Last year, Tom Brady and his then-wife Gisele Bundchen took an undisclosed equity stake in the FTX.
In October, Brady and Bundchen finalized their divorce after 13 years of marriage.
We need to mention that it isn’t clear from the lawsuit against the FTX crypto exchange what economic relationship Brady, Bundchen, and other celebrities had with the above-mentioned crypto exchange.

Tom Brady and the world’s one of the largest crypto exchanges

Do you know that Tom Brady promoted the FTX crypto exchange? Just type “Tom Brady FTX crypto commercial” or “Tom Brady crypto commercial” in order to watch how Brady promoted the above-mentioned crypto exchange.
The collapse of the FTX crypto exchange is a very serious issue. Importantly, Tom Brady may be stuck on the field even longer than one of the most famous athletes wants to be.
As stated above, he and his then-wife, Gisele Bundchen, reportedly planted a large stake in the above-mentioned crypto exchange. In 2020, they announced a partnership with one of the largest crypto exchanges and its CEO.
As brand ambassadors, Brady and Bundchen gained an unknown equity stake in the FTX in exchange for a cryptocurrency, likely FTX’s native coin, FTT.
Do you know “How much is Tom Brady worth?” Let’s find out!
Based on the information taken from the tracking site Celebrity Net Worth, Tom Brady has a $250 million net worth, which is not a bad result. Interestingly, his ex-wife Bundchen has a $400 million net worth.
We need to mention that the “long-term partnership” with one of the main crypto exchanges signed in 2021 also mentioned Brady and Bundchen, as well as the FTX, would be providing a multi-million annual contribution to charity. However, the collapse of the above-mentioned crypto exchange may put Brady’s and Bundchen’s fortunes in jeopardy.

Celebrities and cryptocurrencies

How much Brady and his then-wife put into the FTX remains unclear, even though reports showed FTX’s valuation jumped by more than 1,000% in 2021 from $89 million to more than $1 billion.
Tom Brady is a famous figure in the crypto sphere as well. For example, he helped to found an NFT startup called Autograph. As a reminder, many celebrities made the decision to join the crypto community in 2021, including Tom Brady.
Now, Tom Brady and other celebrities have to cope with the issues caused by the collapse of the FTX crypto exchange.
However, the situation regarding the FTX and crypto industry, in general, is more complicated than it may appear at first glance.
Recently, the lending arm of crypto brokerage Genesis made an important decision. It suspended redemptions as well as new loan originations following an unusual number of withdrawal requests that surpassed its current liquidity, citing market turmoil from the failure of the crypto exchange mentioned above.

Interesting details about FTX

As of November 20, the above-mentioned crypto exchange’s huge web of entities had a total of around $1.24 billion in cash balances.
Importantly, the balances include the crypto exchange as well as its various “silos.”
It is worth mentioning that the largest sum comes from Alameda Research Ltd. We are talking about $393.1 million.
What about the second-biggest balance? Notably, the second-biggest balance, more than $303 million, is in LedgerX. As a reminder, LedgerX is a derivatives platform that belongs to the FTX crypto exchange.
Interestingly, the crypto exchange’s Japanese unit has about $171.7 million in cash on its books. It is noteworthy that the cash is held by the crypto exchange and its affiliates with banks as well as other financial institutions.
The company’s former CEO, Bankman-Fried, is trying to negotiate a multibillion-dollar deal with investors in order to bail out FTX. As a reminder, he no longer serves as CEO of FTX; he resigned on November 11. The next day, one of the largest crypto exchanges declared bankruptcy.
We need to mention that the company’s founder and former CEO has been accused by his industry peers of flagrant mismanagement as well as fraud.
The chief executive of Binance expressed his opinion regarding the above-mentioned crypto exchange. Changpeng Zhao criticized Bankman-Fried.

Binance and FTX

Do you know that Binance changed its decision regarding FTX? On November 9, the crypto giant made an important announcement. It announced that it was no longer interested in buying FTX.
One day earlier, the crypto giant’s CEO Changpeng Zhao announced that Binance reached a nonbinding agreement to purchase FTX’s non-U.S. businesses. However, Binance changed its decision and decided not to buy its rival’s non-U.S. businesses. As a reminder, earlier this year, Binance’s rival was valued at $32 billion by private investors.
It is not an easy task to find an investor or a group of investors, especially in the case of FTX.

FTX and legal aspects

Many people want to know what happened to FTX.

Interestingly, Bankman-Fried led FTX, once valued at $32 billion; however, he lacked basic money controls, according to a lawyer who is in charge of bankruptcy proceedings.
According to the same lawyer, the company’s founder’s team spent roughly $300m on holiday homes as well as property for senior staff.
Without exaggeration, FTX was a crypto giant. People used FTX in order to buy Bitcoin and other cryptocurrencies. Importantly, many clients used their FTX digital wallets like bank accounts, expecting their funds to be safe.
It is worth noting that FTX was the second-largest crypto exchange in the world. Nevertheless, the crypto giant collapsed in less than two weeks. It was one of the most successful crypto exchanges before collapsing in a matter of days once details about FTX’s lack of financial stability were leaked online.
As stated earlier, the company’s CEO resigned. The crypto exchange filed for bankruptcy protection, seeking the court’s oversight as FTX tries to resolve its debts.
Hundreds of thousands of investors stored cryptocurrency on the above-mentioned crypto exchange and are owed money that investors may not get back.
Customers of FTX live all over the world. However, many of them live in one country. Many customers of FTX are based in China.

Tom Brady and the Texas State Securities Board

Recently, the Texas State Securities Board opened an investigation against celebrities, including Tom Brady and his ex-wife Gisele Bundchen.
It is worth noting that the Texas State Securities Board made the decision to check payments Brady and other celebrities received to support FTX US.
The above-mentioned investigation is an additional thorn for Tom Brady and Gisele Bundchen, who are already the subject of a class action lawsuit.
Apart from Brady and his ex-wife, the lawsuit named FTX’s founder and former CEO, NBA legend Shaquille O’Neal, David Ortiz, Udonis, Haslem, and others. For example, baseball star Shohei Ohtani and tennis star Naomi Osaka are also in trouble.
As a reminder, Steph Curry is also on the list. He signed a partnership with the above-mentioned crypto exchange in 2021, which was Curry’s first investment in the crypto industry. What’s interesting, Curry’s foundation, Eat.Learn.Play, also partnered with FTX on charitable initiatives.
As stated earlier, Brady and his former wife have an equity stake in the above-mentioned crypto exchange.
Moreover, Brady and Bundchen took part in a number of FTX commercials. If you want to watch FTX commercials, all you have to do is type “Tom Brady Crypto” or “Tom Brady crypto commercial.”
It is no secret that many celebrities have endorsed various crypto exchanges or cryptocurrencies, and one of them is Kim Kardashian. She reached a settlement with the U.S. Securities and Exchange Commission. According to the commission, she was promoting a cryptocurrency that turned out to be a scam.
One of the most famous TV stars agreed to pay more than one million dollars in penalties in order to settle the investigation. As part of a settlement, Kardashian agreed not to promote any crypto-asset securities for several years, more precisely for three years.