“Now we know why she left”: Tom Brady risks losing millions following the bankruptcy of Crypto firm FTX
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Tom Brady
This season is the year of the loss for Tom Brady. The quarterback has been facing one setback after another this season. First was his divorce from now ex-wife Gisele Bündchen, second is the position that the Tampa Bay Buccaneers find themselves in, and the third and most recent is the possibility of a financial setback that may arise out of his involvement in crypto.
In the world of cryptocurrency, FTX has been one of the top crypto exchanges alongside Binance. The company led by Sam Bankman-Fried was once valued at $32 billion, but now the crypto giant has fallen hard and, due to the discrepancies in their financial statements combined with excessive debts, FTX is going under.
In the last week, FTX attempted to raise funds from investors in order to meet its debt obligations. This did not work and CEO Bankman-Fried has been struggling to look for investors willing to pool in cash in the company. Competitor Binance, led by Chanpeng Zhao, announced intentions to acquire FTX and free it from its debt obligations.
However, this plan quickly went south. Once Binance got access to the books of FTX, Zhao quickly reneged on the deal and this left FTX hanging in the balance. The company has finally been driven to declare Chapter 11 bankruptcy and CEO Sam Bankman-Fried has resigned from his role as CEO.
Also Read: Top 10 Quarterbacks with the most losses in the history of the NFL
Tom Brady’s equity in FTX may soon be worth nothing:
Tom Brady has been an ardent believer in cryptocurrency and NFTs. He has inked partnerships with FTX and Autograph.io, two platforms that make use of blockchain technology and cryptocurrency. Tom Brady has filmed many ads for FTX and in exchange for doing them, he has taken up equity in the crypto company.
Tom Brady and his ex-wife, Gisele Bündchen, received a stake in the company in 2021. The quarterback was named as the official brand ambassador, while Gisele was named as the company’s environmental and social initiatives adviser. It seems unlikely that TB12 will lose any of his money because it is not certain how much he has invested into it. A Twitter user jokingly cited Tom Brady’s failed investment as the reason for his divorce.
Hopefully, the quarterback does not have a lot invested financially in it as it would just make this already bad year worse for him. The story of FTX just goes to show that you cannot judge a company by its ambassador. There is a rough storm going on in the crypto world and only companies that are fundamentally strong will be able to weather it. The most likely event now is that Binance will acquire FTX for pennies on the dollar and will attempt to restructure the company’s debts, following which it will be able to start afresh.
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Sumedh Joshi
(2296 Articles Published)