In June 2021, Tom Brady and his wife Gisele Bündchen acquired an undisclosed stock share in FTX, which marked the beginning of their investment in the company. At the time, Brady stated in a news release that it’s a tremendously interesting opportunity in virtual currency and the groundbreaking FTX team has continued to open his eyes to the unlimited possibilities.
This specific opportunity taught me the value of enlightening others about the potential of cryptocurrencies while also giving back to social groups and the environment.
Announcement through commercials
“The more I learned about the crypto sphere, the more exciting it was’. With time, we will all grow more accustomed to hearing about virtual currency. The opportunity to utilize resources to aid in the regeneration of the Earth and assist people to lead healthier lives attracted me to this cooperation the most since it may result in a genuine revolution of our society.” said Bündchen.
An advertisement for the swap followed this declaration of their collaboration in September 2021. In the commercial, he and Bündchen make a call to every person they know to see if they’re “in” on cryptocurrency. “I’m launching FTX into the crypto space, you in?” Over the line, Brady notifies a pal.
FTX Investment and the downfall
The talk of the cryptocurrency industry in 2021 and 2022 was all about FTX and its CEO Sam Bankman-Fried. Just three years earlier, in 2019, Bankman-Fried created the Bahamas-based platform, one of the largest in the world. It was the third-largest marketplace by volume at its pinnacle in 2021 when it had over a million customers and $1 billion in income.
However, investors rushed to sell their stakes and demanded withdrawals totalling $6 billion after learning on November 3 that FTX might be experiencing a liquidity problem. Each account was swiftly frozen by FTX. On November 11, 2022, Bankman-Fried resigned as CEO, and the business declared bankruptcy, leaving maybe more than a million investors high and dry.
Before its demise, FTX was one of the biggest cryptocurrency exchanges around the world and among the most proactive in terms of public outreach for digital currencies.
The business owned the naming rights to the Miami Heat venue, insignia on the Major League Baseball umpires’ uniforms, and relationships with National Basketball Association teams.
It broadcasted eye-catching TV commercials featuring celebrities endorsing FTX as an entertaining but secure location to invest during NBA as well as National Football League games, such as the Super Bowl included in the previous year.
The fact that Bankman-Fried was recognized as a crypto prodigy makes it all the more startling. By the time he was 30 years old, his estimated net worth was $24 billion, making him one of the wealthiest persons in the world.
Brady, Bündchen, David, and other famous people are named as defendants in a Florida class-action civil case accusing them of scamming investors who suffered financial losses as a result of FTX’s abrupt collapse. It asserts that FTX lured gullible investors into “a Ponzi scam” by using well-known figures to promote the exchange.
It is unclear exactly what the business arrangement was between FTX and these high-profile endorsers based only on the material disclosed in the case. However, experts caution that promoting cryptocurrency carries additional weight and ramifications.