Investors in failed cryptocurrency exchange FTX included Endeavor’s IMG sports division, NFL quarterback Tom Brady and New England Patriots owner Robert Kraft, according to bankruptcy court documents.
FTX’s epic crash has likely rendered the holdings of its dozens of investors worthless. The company, which filed for Chapter 11 bankruptcy protection in November, had raised a total of $2 billion of capital, including a $400 million Series C round that closed in January 2022 at a valuation of $32 billion. FTX at one time held a reported $50 billion in assets; it filed for bankruptcy after a run on deposits left it with an $8 billion shortfall in assets.
On Monday, the U.S. Bankruptcy Court for the District of Delaware released a list of equity holders in FTX and its affiliates (available at this link).
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According to the document, IMG held 163,000 shares of Class A common stock and 38,154 shares of Class B preferred stock in one of FTX’s entities. Brady owned 1.14 million common shares and his ex-wife, Giselle Bündchen, held 686,761 shares; Brady and Bündchen had appeared in a 2021 ad promoting FTX. Kraft held 479,000 shares of common stock and 155,144 shares of preferred stock in FTX entities through his KPC Venture Capital.
Major FTX shareholders included Dan Loeb’s Third Point, Paradigm, Sequoia Capital, Thoma Bravo, Softbank, New Enterprise Associates (NEA), Temasek, Tiger Global Management and Coinbase, a crypto exchange competitor to FTX.
Former FTX CEO Sam Bankman-Fried was arrested last month in the Bahamas and extradited to the U.S., where he was charged with eight criminal counts including fraud and money laundering. Bankman-Fried has pleaded not guilty to the charges. He was released on a $250 million bond while awaiting trial, which is set to start Oct. 2, 2023, in New York.
Hollywood has jumped on the FTX affair with multiple projects about the company and its collapse in development, including a limited series from Joe and Anthony Russo’s AGBO production company for Amazon Studios.
Pictured above: FTX founder Sam Bankman-Fried leaves Manhattan federal district court after his arraignment and bail hearings on Dec. 22, 2022
FAQs
Tampa Bay Buccaneers quarterback Tom Brady and New England Patriots owner Robert Kraft are among a list of FTX equity owners who are set to see their investments in the cryptocurrency firm be completely wiped out in bankruptcy proceedings, according to a report by Insider.
Did Tom Brady really lose money in FTX? ›
Tom Brady lost millions in the collapse of cryptocurrency company FTX, for which he served as an "ambassador," The New York Times reported Friday.
Was Tom Brady an investor in FTX? ›
Tom Brady is the most famous face to promote and invest in FTX — and he also may have suffered the greatest individual loss. The Tampa Bay Buccaneers quarterback owned over 1.1 million common shares of FTX Trading, which equaled about $45 million before the company went bankrupt, according to Bloomberg.
How many investors lost money with FTX? ›
Billions were lost when the cryptocurrency exchange headed by convicted fraudster Sam Bankman Fried went bust in November 2022, with an estimated one million customers losing funds.
Will FTX investors get their money back? ›
Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago.
How did Tom lose $30 million? ›
Brady received $30 million in stock for supporting FTX, which inevitably became worthless after the company collapsed.
Why is FTX suing Tom Brady? ›
Contributor. I cover topics related to cryptocurrency-related policy and regulation. Superstar celebrities like NFL quarterback Tom Brady and comedian Larry David are facing lawsuits for endorsing failed cryptocurrency exchange FTX.
How much stake did Tom Brady have in FTX? ›
Brady, Bundchen Likely to Lose Entire Stakes
14 hearing by the U.S. Senate Banking Committee into the failures of FTX, Shark Tank investor Kevin O'Leary estimated his 32,000 shares to be worth $1 million before the collapse. 5 The NFL star and the former supermodel held about 2 million FTX shares together.
Who were the main investors in FTX? ›
FTX's venture backers included Patriots owner Robert Kraft and billionaire Paul Tudor Jones, new filings show. FTX's shareholders included entities connected to New England Patriots owner Robert Kraft and hedge fund titan Paul Tudor Jones.
Why did FTX collapse? ›
A surge of customer withdrawals due to concerns over this questionable financial valuation practice and unusually close relationship with Alameda pushed FTX and Alameda into bankruptcy and shook the volatile crypto market.
Meanwhile, venture capitalists and big institutions like the Ontario Teachers' Pension Plan, which bet on FTX as the prudent investment in crypto, just lost billions. Other losers include Robinhood, which is partially owned by SBF and saw its already sickly share price crash further on Tuesday's news.
How did FTX lose all its money? ›
FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low on Nov. 9, 2022.
What illegal thing did FTX do? ›
In November 2022, FTX imploded virtually overnight, erasing $8 billion in customer savings. At a trial last fall, he was convicted of seven counts of fraud, conspiracy and money laundering. His sentence ranks as one of the longest imposed on a white-collar defendant in recent years.
Was all the FTX money recovered? ›
This covers about 98% of FTX customers. FTX said that it was able to recover funds by monetizing a collection of assets that mostly consisted of proprietary investments held by the Alameda or FTX Ventures businesses, or litigation claims.
Can people get their money out of FTX? ›
While some could recover as much as 142% of what they held, the vast majority are likely to receive 118%. The specific pay day is estimated to be months away. While the gains are unusual and impressive, the biggest winners in the FTX affair are those who trade bankruptcy claims.
Will FTX be revived? ›
FTX has abandoned efforts to restart its crypto exchange, instead opting to liquidate all assets and return funds to customers, a company attorney said on Wednesday.
How much did Netflix pay Brady for roast? ›
How much did Tom Brady get paid for the roast. He was paid nearly $25 million for the roast. Hart also gave Brady a diamond-studded ring worth $40,000.
What is Tom Brady's net worth? ›
When NFL legend Tom Brady left the field at the end of the final game of the 2022 season, he was the league's career leader in passing yards (89,214) and touchdowns (649). He also left with an estimated net worth of $512 million.
How much money did Brady and Gisele lose? ›
New England Patriots legend Tom Brady and his ex-wife Gisele Bundchen lost a staggering $48 million investing in the doomed crypto exchange FTX. Brady, 45, invested a cool $30 million while his then-wife Gisele, 42, went with $18 million, reports the New York Times.
How did FTX lose money? ›
FTX crashed due to mismanagement of funds, lack of liquidity and the large volume of withdrawals. Binance announced it would buy FTX to prevent a larger market crash, but quickly bailed out of the deal as more news reports of mishandled customer funds surfaced.
