The High Cost of FTX’s Collapse: Brady’s $30 Million Loss
In a shocking series of events, Tom Brady, the iconic former NFL quarterback, has been hit with a financial blow after losing a staggering $30 million in the collapse of FTX, the cryptocurrency powerhouse. These now-worthless shares were part of Brady’s agreement with FTX back in 2021 when he served as an ambassador for the company.
Gisele Bundchen’s FTX Nightmare
Gisele Bundchen, Brady’s ex-wife, also tasted the bitterness of the collapse, with her investment in FTX turning into an $18 million loss. The bankruptcy declaration by FTX last November has indeed pushed Brady and Bundchen into a quagmire of significant financial losses and looming legal troubles.
Legal Backlash from FTX Investors
Post their divorce in October, Brady and Bundchen find themselves at the receiving end of a lawsuit filed by aggrieved FTX investors. The federal court case in Florida also names basketball legend Shaquille O’Neal and other individuals who are accused of failing to conduct due diligence before publicly endorsing FTX.
A Fall from Financial Grace
The total losses experienced by Brady and Bundchen amount to a shocking $48 million in now-defunct FTX shares. From a valuation of $32 billion at the time of collapse, FTX is now worthless, leaving its high-profile investors in a financial crunch. Brady’s $45.2 million loss in football salary and endorsements earnings further drops him to the 50th position on Forbes’ 2023 list of the world’s highest-paid sports personalities.
Other Celebrity Casualties of Crypto and NFTs
The erratic nature of cryptocurrency and NFT investments has not just impacted Brady and Bundchen but has also claimed many other well-known victims.
YouTube sensation Logan Paul saw the value of his half-million-dollar NFT crumble to a mere $10. Similarly, KSI, the British rapper and YouTuber, suffered a massive loss after his investment in the LUNA crypto token tanked.
Football superstar Neymar Jr. ventured into the volatile world of NFTs, investing over $1 million in Bored Apes Yacht Club, only to witness a sharp drop in value. Even DJ Steve Aoki found himself in a tough spot with his NFT collection value plummeting.
Potential Billion-Dollar Lawsuit in the Horizon
The individual financial catastrophes these celebrities face are just the tip of the iceberg. The class-action lawsuit against FTX is predicted to bring even more havoc. The Moskowitz Law Firm believes the damages from the lawsuit against celebrity endorsers like Brady and O’Neal could cross the staggering $5 billion mark.
