The collapse of Sam Bankman-Fried’s FTX crypto empire was not only felt by deep members of the crypto community – some big-name entrepreneurs and celebrities also lost a lot of money.
Although SBF reportedly led investors to believe it could bring them high returns with little risk, more than a million people may have been affected by the crash, and crypto newbies quickly discovered that crypto trading is not for the weak. of heart.
Bankman-Fried is currently awaiting trial for allegedly orchestrating ‘one of the biggest financial frauds in American history’ after a bank run exposed an $8 billion hole in his accounts and his piggy bank relationship with his crypto trading company Alameda Research.
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Meanwhile, new FTX CEO John Ray, who replaced SBF after the company filed for bankruptcy, said the company had located $5 billion in cash and other assets, and while they didn’t have not finished discovering unearthed funds, they also plan to sell more than 4.6 dollars. billion additional assets as well.
It’s unclear how the recovered funds will be distributed, but typically in bankruptcy proceedings only bondholders are eligible to recoup some of their losses, while those with equity holdings are left at a loss, according to Markets Insider. .
Sequoia Capital probably suffered the biggest loss for an outside investor in the exchange with its $200 million investment, which peaked at $350 million in January 2022, according to data obtained by Forbes.
While Sequoia reportedly told investors that its FTX investment was offset by its $7.5 billion in realized and unrealized gains, Singaporean investment firm Temasek was not so lucky.
The company reportedly invested $210 million for 1% FTX and $65 million for 1.5% FTX US, but has since set its holdings at zero.
Additionally, the investment firm Paradigm reportedly invested $215 million, while the Ontario Teachers’ Pension Plan invested $75 million and has since reduced its investment to zero.
Here’s a look at some of the famous faces who lost big in the FTX crypto meltdown.
Tom Brady is the most famous face to promote and invest in FTX – and he also suffered perhaps the biggest individual loss. The Tampa Bay Buccaneers quarterback owned more than 1.1 million shares of FTX Trading common stock, which was worth about $45 million before the company went bankrupt, according to Bloomberg.
While his investment is now nil following the collapse, he previously advocated for the swap and appeared in several promotional advertisements with his now ex-wife Gisele Bündchen.
Along with her now ex-husband, Tom Brady, the model also lost a significant portion of her wealth in the swap. Bündchen reportedly owned 680,000 FTX shares, valued at around $25 million.
The Shark Tank entrepreneur was a strong supporter of SBF’s FTX before the crypto exchange fell. As a paid spokesperson for the company, O’Leary owned 32,000 shares of FTX and 110,000 shares of FTX US. He said his shares were valued at $1 million at a meeting of the US Senate Banking Committee in December, adding that he had since “cut them to zero”.
O’Leary told CNBC’s “Squawk Box” in December that he was paid about $15 million to act as the brand’s paid spokesperson and invested just under $10 million. dollars in the crypto exchange. But he said his investment in crypto is now zero.
New England Patriots owner Robert Kraft was also a victim of FTX. He reportedly held around 630,000 FTX-related shares in total through KPC Venture Capital LLC, an entity related to the Kraft Group.
Using O’Leary’s valuation, the NFL team owner may have lost an eight-figure investment.
Billionaire oil baron Robert Belfer, who was once known as the heir to bankrupt gas company Enron, also reportedly lost millions with the collapse of FTX. Two companies linked to the Belfer family held shares in both FTX and FTX US with a combined stake of $34.5 million, according to court documents obtained by the Financial Times. Belfer was also notably entangled in Bernie Madoff’s infamous Ponzi scheme.
Donald Trump’s former communications director was also involved in the collapse of FTX along with his alternative investment firm, SkyBridge Capital. Last September, FTX acquired 30% of SkyBridge Capital, per The Street, and while details of the deal are unknown, Scaramucci said he was also at a loss despite the purchase.
“We lost money in general because the overall portfolio is shrinking as a result of this debacle, so yes, I guess so,” he said when asked about the collapse in November. at the Bloomberg New Economy Forum in Singapore.
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Stephen Curry has been one of many celebrities to endorse FTX with his various commercials and 2021 partnership with the brand. Like Brady and Bündchen, Curry also earned a stake in FTX for his work with the company.
Curry’s team, the Golden State Warriors, was also mired in scandal after FTX agreed to pay $10 million for an international rights sponsorship deal that gave the exchange in-zone signage, exclusive brand placements and the rights to the team’s NFTs in December 2021.
Want to learn more about crypto? As the world’s leading crypto expert, @stephencurry30 got you covered…or does he?
—FTX (@FTX_Official) March 29, 2022
Curry is also named in a class action lawsuit that claims celebrities who endorsed FTX participated in deceptive strategies to “induce trust and induce consumers to invest in what was ultimately a Ponzi scheme,” according to the lawsuit.
Sam Bankman-Fried, Tom Brady, Gisele Bundchen, Kevin O’Leary, Shaquille O’Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka and Larry David were also mentioned in the lawsuit.
Tennis star Naomi Osaka also signed a long-term partnership deal with FTX in March that was supposed to help bring women into the world of crypto, according to Reuters. She received a stake in the business and received compensation in the form of crypto.
Four times Grand Slam champion, @naomiosaka changes the game on and off the pitch. We are incredibly proud to call her our new partner!
—FTX (@FTX_Official) March 21, 2022
Red Sox baseball legend David Ortiz also signed on to be an FTX Ambassador in October 2021 and agreed to be compensated in cryptocurrency, per CoinDesk. At the time, he agreed to release several NFT collections, while FTX agreed to sponsor the David Ortiz Celebrity Golf Classic and donate to David Ortiz’s Children’s Fund. It is unclear whether the fund will be required to refund donations if they are found to have been made with customers’ money.
Check out our Dirty Money Podcast for our take on Crypto Crook Sam Bankman-Fried.
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