The bankruptcy of cryptocurrency company FTX would cause a lot of trouble for quarterback Tom Brady, who would lose millions of dollars.
• Read also: FTX: Ex-cryptocurrency tycoon Sam Bankman-Fried pleads not guilty to fraud in New York
• Read also: Cryptocurrencies: here for good despite a 62% drop in twelve months
Documents filed in a Delaware bankruptcy court show the 45-year-old athlete owns more than 1.1 million shares of FTX.
New England Patriots owner Robert Kraft is also one of those who invested heavily in the company that would prove to be a fraud.
Last month, FTX founder Sam Bankman-Fried was indicted and faces two counts of wire fraud and six counts of conspiracy in federal court in Manhattan.
The 30-year-old, who has pleaded not guilty, is accused of allegedly stealing client deposits to pay debts from his hedge fund and lying to investors regarding FTX’s financial condition.
It would seem that investors like Brady and Kraft have very little chance of being reimbursed.
“Ultimately, we won’t be able to recoup all the losses,” John J. Ray III, who is managing FTX’s restructuring, said in December.
At the same time last year, FTX raised around $400 million, which helped the company increase its value to almost $32 billion. Thus, Bankman-Fried became one of the richest people in the world.
Brady and his former wife Gisele Bündchen were part of a celebrity group that promoted FTX. The two notably participated in commercials for the company during the last Super Bowl.
Their role in promoting FTX has already been the subject of legal scrutiny.
Shortly following the cryptocurrency business collapsed, a client filed a class action lawsuit once morest the founder, along with Brady, Bündchen and several other celebrities.
Plaintiffs’ attorneys notably argued that FTX was “a massive Ponzi scheme” and that the executives behind it were “PR and marketing geniuses.”
