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.In exchange for their respective investments, the pair were given FTX stock which is now worthless following the company's collapse in November 2022.
Despite that, the former couple may still have to pay tax on the investment. Brady and Gisele divorced in 2022.
It has also been revealed that Brady was recruited to be an ambassador for FTX by the company's head of partnerships, Sina Nader, a former college football star. According to the Times, the pair maintained a close relationship during Brady's dealings with FTX.
In November 2022, with the exchange on the verge of collapse, Brady called Nader to ask him: 'How are you doing? I know you put your heart and soul into this.'
Gisele, pictured here with FTX founder Sam Bankman-Fried, said that she felt 'blindsided' by the crypto exchange's collapse
During his time as a brand ambassador for FTX, Tom Brady appeared in ads for the company as well as making social media posts showing him with Bankman-Fried
Shark Tank star Kevin O'Leary has admitted to losing an $11 million investment in FTX
Curb Your Enthusiasm creator and star Larry David was one of the most prominent FTX ambassadors
Other celebrities who lost money included Shark Tank star Kevin O'Leary, who lost a total of $11 million investing in the exchange. He told CNBC's Squak Boxin in December 2022 that he was paid $15 million to be a spokesperson for the company.
While it's estimated that Tom Brady's former boss, Patriots owner Robert Kraft, lost 'eight figures' through his investment.
Sports stars Steph Curry, Naomi Osaka and David 'Big Papi' Ortiz were all paid in part for their role as ambassadors through equity stakes in FTX.
During their time as ambassadors for FTX, Brady and Gisele appeared in commercials, made social media posts and spoke at conferences, alongside CEO Sam Bankman-Fried.
The couple has been named in a class action lawsuit being brought by customers of FTX who are taking the celebrities who endorsed the exchange to court.
Others mentioned in the suit include Curry, Seinfeld co-creator Larry David, NBA legend Shaquille O'Neal, William Trevor Lawrence, Udonis Haslem, Shohei Ohtani and Naomi Osaka.
Brady and Gisele began working with FTX in the summer of 2021. The Times reports that the quarterback was especially interested in cryptocurrencies and would often talk directly to Bankman-Fried.
'Imagine a tiger and a lion talking.They’re slightly different, they do different things, but they’re really formidable in their own arenas,' Nader said of the duo's interactions in his interview with the Times.
Also in 2021, Bankman-Fried became a board member of Autograph, an NFT store that was co-founded by Brady. Bankman-Fried was later quoted as saying he might buy an NFL team with Brady.
Since FTX's collapse, Brady has not spoken publicly about his relationship with Bankman-Fried.
For her part, Gisele told Vanity Fair:'I was blindsided.I’m no different than everyone else that trusted the hype...It’s just...terrible.I’m so sorry for all of us that this happened, and I just pray that justice gets made.'
The former Victoria's Secret model also shifted the blame on to her financial advisors who made FTX sound like a 'great thing.'
The couple are accused, with a slew of other celebrities, of not doing any 'due diligence' prior to endorsing FTX.
FTX itself had numerous ties to sports before its eventual collapse: The company paid an undisclosed amount to place patches on the uniforms of MLB umpires, $135 million for the naming rights on the arena where the Miami Heat play, and another $10 million to Steph Curry’s basketball team, the Golden State Warriors, for ad placement in its arena and throughout the Warriors organization.
Sina Nader, FTX's head of partnerships, was charged with recruiting Brady as a brand ambassador
The Times report mentions that singer Katy Perry managed to avoid getting involved with FTX despite holding negotiations with the brand
The Times report mentions that singer Katy Perry managed to avoid getting involved with FTX despite holding negotiations with the brand.
While her one-time rival, Taylor Swift, also avoided a deal but only because Sam Bankman-Fried backed out of a $100 million tour sponsorship arrangement at the last minute after six months of talks.
It was earlier reported that it was Swift who pulled out of a deal over unanswered questions that she had over cryptocurrencies. Many credited her father, Scott, a respected investment banker with guiding her through the negotiations.
The lawyer leading the class action suit against the celebrities who were associated with FTX, Adam Moskowitz, toldThe Scoop podcast with David Chaparro in April that it was Swift who broke off the talks.
'The one person I found that did that was Taylor Swift. In our discovery, Taylor Swift actually asked them, "Can you tell me that these are not unregistered securities?"' Moskowitz said.
Among those who chimed in on the story was Twitter owner Elon Musk. 'Taylor is smart and her father is a well-regarded investment banker,' the South African tweeted.
'I have an excellent father, his strength is making me stronger,' Swift sang on her track The Best Day.
Swift's father worked for Merrill Lynch in various roles for more than 30 years, including as a stock broker and investment banker.
