Tom Brady, Gisele Bündchen’s investment in FTX at risk following collapse Tom Brady, Gisele Bündchen’s investment in FTX at risk following collapse
Tom Brady and Gisele Bündchen's investment in FTX may be at considerable risk following the exchange's collapse.
2 min read
Updated: Oct. 10, 2023 at 10:05 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Following the recent developments leading to Binance’s planned buyout of FTX and later backtracking on the deal, Tom Brady and Gisele Bündchen’s 2021 investment in FTX is at risk as the exchange faces insolvency, CoinDesk reported.
In June 2021, Bloomberg News reported that Brady and Bündchen took an equity stake in FTX as part of a long-term partnership.
The deal gave Brady an ambassador role for FTX and Bündchen the role of Environmental and Social Initiatives Advisor. The equity stake and financial terms were not disclosed.
Brady and Bündchen have a combined net worth of about $650 million, according to Celebrity Net Worth.
The fall of FTX
Speculation and concerns about the solvency of FTX mounted as Binance CEO Changpeng “CZ” revealed that Binance was liquidating all remaining FTT tokens on its books. CZ said Binance would liquidate FTT gradually and described the move as post-exit risk management, citing lessons learned from Terra Luna’s collapse.
FTX exchange’s CEO, Sam Bankman-Fried “SBF” confirmed rumors that FTX was struggling to clear its withdrawal backlog, which contradicts his Monday tweet that “FTX is fine. Assets are fine.” A halt in all non-fiat customer withdrawals ensued, shedding light on the company’s deteriorating condition.
Changpeng Zhao, the CEO of Binance, later tweeted that FTX approached the exchange for help as it was struggling with liquidity. CZ said that Binance signed a non-binding letter of intent to acquire the company in the coming days.
Late on Nov. 9, Binance announced that it will not pursue its option to purchase FTX following due diligence revealing mishandling of customers’ funds and reports that a US agency was investigating the exchange.
The near-collapse of FTX also saw SBF’s net worth, originally estimated to be $ 15.2 million prior to GTX’s collapse, fall by nearly 94% to $99.15 million as his assets are linked to about half of the beleaguered FTX and a share of its FTT tokens. He also lost his billionaire status overnight in the wake of the event.
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Cynthia Chung
Cynthia is an avid writer who is fascinated by the potential of blockchain tech. She also resonates with Web3 values, especially creative expression and individual autonomy. Since discovering crypto in 2019, she has dedicated her work towards reporting on developments in the blockchain and crypto space.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.