“Ponzi Scheme,” Tom Brady and Gisele Bündchen find themselves reunited in their bid to fight against the FTX lawsuit
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Tom Brady and Gisele Bündchen
Tom Brady and Gisele Bündchen were not lying when they recited their marriage vows, “till death do us part.” The couple may no longer be married, but they do find themselves united in a rather unusual scenario. While they were married, the couple had business interests with the scandal-ridden crypto exchange FTX. Brady and Bündchen had appeared in multiple advertisements in which they promoted the company and they were given an equity stake in the exchange.
FTX was worth $32 billion at one point. However, due to financial mismanagement and other internal issues, the company was forced to declare Chapter 11 bankruptcy. As FTX fell down, it dragged all investors and other celebrities who had urged the public to invest in cryptocurrencies through the exchange along with it as well. The likes of Dr. Shaquille O’Neal, Kevin O’Leary, Tom Brady, and Gisele Bündchen were some of the most prominent faces of this campaign.
The fall of FTX has been one of the worst that we have seen in a long time. After the company declared bankruptcy and former CEO Sam Bankman-Fried resigned before fleeing overseas to the Bahamas, the regulatory bodies stepped in and had a detailed look at the internal working of the company. When details of the dismal management and lackluster leadership were made public, it enraged investors who are now holding the celebrities who promoted the company accountable by seeking monetary damages.
Tom Brady and Gisele Bündchen find themselves in the midst of a class action lawsuit against them. The new details that are emerging as the investigation into the books of the company progress do not help the case of the names associated with the company. John J. Ray III, the insolvency attorney who has been appointed as the CEO of FTX in order to recover losses, in his latest update to the House Committee had this to say.
Tom Brady and Gisele Bündchen benefitted financially from promoting FTX:
“We’re not going to be able to recover all losses here.” He dubbed FTX to be a “Ponzi Scheme” that used investors’ funds to pay off money already invested to create the illusion that the company was sitting on a surplus of funds. Along with the Tampa Bay Buccaneers QB and his celebrity ex-wife, top athletes such as Stephen Curry and Naomi Osaka have also been named in this lawsuit.
Tom Brady and Gisele Bündchen have kept confidential when it comes to the financial remuneration that they received in exchange for promoting FTX. This move could put them in a tough spot as this could lead them to be charged with promoting unregistered securities as per The Hollywood Reporter.
As cryptocurrency regulations are relatively in the infancy stages, investments in this asset class are extremely risky. By involving top celebrities in promoting their ad campaigns and earning the trust of the public, FTX encouraged them to put their money into an extremely risky asset. Due to this, the lawsuit would be bad for all the celebrities involved as it is “volatile” in nature.
Despite their divorce, Tom Brady and Gisele Bündchen find themselves united under unfavorable circumstances. The seven-time Super Bowl champ has turned to the reputed law firm, Latham & Watkins, to represent him in the class action lawsuit. The firm represents a few other celebrities who have also been named as a part of this suit. However, their names have not been made public. It is possible that Gisele Bündchen is also one of them, but it cannot be confirmed or denied at this point.
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Sumedh Joshi
(2235 Articles Published)