FTX Collapse: Tom Brady, Stephen Curry, Shohei Ohtani Among Sports Figures Named in Class Action Lawsuit

The cryptocurrency market was rocked last week by the collapse of FTX, which filed for bankruptcy and prompted the resignation of CEO Sam Bankman-Fried after his fortune plummeted to virtually nothing from $16 billion earlier in the week. Several athletes involved in the crypto exchange are facing consequences.

Tom Brady, Stephen Curry, Shohei Ohtani and other top athletes involved with FTX are among the defendants in a class action lawsuit filed against the company in the Southern District of Florida of US Circuit Court alleging that the athletes and bankers Fried violated state laws and caused more than $11 billion in harm to consumers. According to Fox Business, the lawsuit describes the Athletes as parties “that either FTX Trading and FTX US (collectively, the “FTX Entities”) control, sponsor, endorse and actively participate in the offering and sale of unregistered securities have income accounts (YBAs) to residents of the United States.”

The lawsuit aims, among other things, to hold FTX’s prominent parties “responsible for the billions of dollars in damage they caused to the plaintiff and the groups and compel the defendants to recover them.”

Brady and his now-ex-wife Gisele Bundchen are among the prominent investors in FTX since it was announced the two took major stakes in the company in 2021. The Tampa Bay Buccaneers quarterback has served as a brand ambassador for the company, starring in its commercials and receiving cryptocurrency for doing so, while Bundchen has been named advisor on the company’s environmental and social initiatives.

Brady and FTX’s other major investors have now likely lost most, if not all, of their stake in the company, particularly after a deal with cryptocurrency giant Binance to save FTX fell through following a review of the company’s finances.

Brady is far from the only athlete and sportsman likely to suffer major financial damage from FTX’s demise.

These three are part of a group of prominent athletes with ties to the FTX that also includes NBA legend Shaquille O’Neal, Jacksonville Jaguars quarterback Trevor Lawrence and Boston Red Sox great David Ortiz.

FTX’s demise also had major repercussions elsewhere in the crypto space, impacting athletes who have invested in other forms of crypto. After reports that FTX-owned BlockFi is now facing bankruptcy, it was noted that Detroit Pistons star Cade Cunningham will lose significant money due to a deal with BlockFi in which he received 100% of his signing bonus in Bitcoin.

FTX also has major sponsorship and business deals with teams and leagues. Last December, FTX entered into a $10 million international sponsorship with the Warriors, giving the brand a strong presence across the Chase Center and on the franchise’s G League and NBA 2K teams. FTX also held the naming rights to the Miami Heat’s home arena and was a sponsor of the Mercedes Formula 1 team.

On November 11, the Heat, along with Miami-Dade County, released a statement say they are ending their relationship with FTX and are now looking for a new naming rights partner for their arena.

In Brady’s case, the latest blow to his personal and professional balance sheets is the FTX collapse and its likely impact on his finances. Late last month, Brady and Bundchen announced that they have finalized their divorce.


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