In a stunning turn of events, former NFL quarterback Tom Brady faces financial turmoil after losing a staggering $30 million in the collapse of cryptocurrency giant FTX.
The now-worthless shares were part of Brady’s arrangement with FTX in 2021 when he was still an “ambassador” for the firm. Gisele Bundchen, his ex-wife, lost $18 million on worthless stock investments.
Since FTX declared bankruptcy in November last year, Brady has suffered significant financial losses and faces legal trouble due to the company’s demise.
After divorcing in October, Brady and Bundchen are now sued by FTX investors seeking payback from celebrity endorsers. The case, filed in federal court in Florida, names as defendants basketball great Shaquille O’Neal and many other individuals who allegedly failed to do enough research before endorsing FTX goods to the general public.
Including the $48 million in shares owned by Brady and Bundchen, FTX had a worth of $32 billion when it collapsed. But now that the firm is worthless, the famous couple and their fellow investors are discouraged.
Seven-time Super Bowl winner Brady has lost $45.2 million in earnings from his football salary and endorsements, leaving him in 50th position on Forbes’ 2023 list of the world’s highest-paid sports.
Other celebrities who lost money in crypto and NFTs
Many more well-known people have lost money due to the unpredictability of cryptocurrency and NFT investments.
YouTube personality Logan Paul, for instance, saw an NFT he purchased for over half a million dollars plummet to just $10.
Similarly, British rapper and YouTuber KSI suffered a multimillion-pound loss after investing in the LUNA crypto token, which ultimately collapsed to almost zero.
After investing over $1 million in two NFTs from Bored Apes Yacht Club, football sensation Neymar Jr. ventured into the NFT sector but saw a significant loss in value.
Famous DJ and record producer Steve Aoki saw a major reduction in the value of his NFT collection, with one piece, a “Doodles” NFT, falling from about $346,000 to $42,000.
These individual losses are in addition to the far-reaching effects that a class-action lawsuit against FTX is likely to have. The Moskowitz Law Firm estimates that the damages from the case against celebrity endorsers like Brady and O’Neal might surpass $5 billion.