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How does FTX collapse affect Tom Brady? Buccaneers QB could face legal trouble over crypto endorsement

Seattle Seahawks v Tampa Bay Buccaneers
Is Tampa Bay Buccaneers QB Tom Brady broke after FTX collapse?

Tom Brady usually breaks down defenses with his football IQ and throwing skills. But off the field, the star quarterback’s finances are in defense mode after the collapse of cryptocurrency exchange FTX.

As of Tuesday, Nov. 8, the exchange had more than $6 billion in withdrawals, with the market value plummeting by 70 percent.

Brady and his ex-wife Gisele Bündchen were significant investors, reportedly buying an equity stake in FTX. Both have also appeared in ads for the company. FTX was once valued at $32 billion and now faces complete collapse with the recent run on all cryptocurrency exchanges.

Tom Brady and Gisele doing an ad for FTX.Needs to be saved for posterity.🔊sound ...🧐#FTX #SBF #Crypto https://t.co/VebJtpu0sf

It is not immediately clear how much Tom Brady and Gisele Bündchen lost in the collapse. That's because both had an equity stake (a percentage of stock shares owned) in FTX. But it stands to reason that the loss is significant.

Both Brady and Bundchen have also been named in a lawsuit filed by an FTX investor, according to CNN.

“The deceptive FTX platform maintained by the FTX entities was truly a house of cards,” the proposed class-action lawsuit read.

The Tampa Bay Buccaneers quarterback initially beamed at the possibilities of his major investment:

"It's an incredibly exciting time in the crypto-world and Sam and the revolutionary FTX team continue to open my eyes to the endless possibilities. This particular opportunity showed us the importance of educating people about the power of crypto while simultaneously giving back to our communities and planet.
"We have the chance to create something really special here, and I can't wait to see what we're able to do together."

In response to the downward market moves, Brady even scrubbed all of his social media accounts of any mention of the crypto company.

Tom Brady and Stephen Curry were the face of FTX’s aggressive ad campaigns

NBA star Stephen Curry also had an equity stake in FTX and was prominently featured in ads for the company.

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Curry first spoke of his excitement at joining FTX when he said:

"I'm excited to partner with a company that demystifies the crypto space and eliminates the intimidation factor for first-time users.”

The Golden State Warriors also signed a $10 million sponsorship deal with the company. But with news of the collapse, more changes and deletions are to be expected.

Even the Miami Heat moved to change the naming rights of their arena after news of the company's fall. The Heat previously signed a 19-year, $135 million deal with FTX for the naming rights to their basketball arena.

FTX is a cryptocurrency exchange company that utilized a platform to allow investors to buy, sell, and trade digital currency. Its business model aimed to target and attract new investors through its app that billed itself as easy and accessible.

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Edited by Akshay Saraswat
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