The abrupt collapse of crypto firm FTX has brought yet another moment of crisis to the cryptocurrency community. The value of various currency has plummeted, customers are left with nothing and the company’s founder may be in serious trouble about literal billions of real dollars missing from FTX’s books.
That spells a lot of trouble for a lot of people, and those who used their platforms to encourage people to use companies like FTX may be in trouble as a result. That includes Tom Brady, who was an investor in FTX and reportedly lost big when the company went belly-up last week. Brady most notably was in a Super Bowl ad back in February along with his then-wife, Gisele Bündchen.
The entire purpose of the ad was to show how “in” the now-former couple was on crypto as an investment. Even Fireman Ed was involved.
But just eight months later, all that remains of FTX is a crater and possibly some significant criminal exposure for its founder, Sam Bankman-Fried. And, just maybe, all the people who were “in” on crypto in a very public way. Like Brady and Gisele Bündchen. According to the New York Post, celebrities like Brady, Bündchen, and even Larry David could be in legal trouble with FTX evaporating.
Investors not only are suing Sam Bankman-Fried, but also celebrity endorsers of his bankrupt crypto company FTX, including Tom Brady, ex-wife Gisele Bündchen, Larry David, and sports stars like David Ortiz, Steph Curry and Shaquille O’Neal.
Attorneys including star litigator David Boies filed the lawsuit on behalf of Edwin Garrison, an Oklahoma resident who had an FTX yield-bearing account which he funded with crypto assets to earn interest, and others like him.
Celebrity endorsers such as David, who filmed a Super Bowl commercial for FTX, are accused of engaging in deceptive practices to sell FTX yield-bearing digital currency accounts, the suit claims.
That’s bad news for anyone who got the bag for touting crypto, especially if other companies continue to fail and the market fallout continues. And it’s really incredible to consider just how quickly everything changed for both FTX and Brady, who just eight months ago was heading to retirement, still married and finding more ways to make money with crypto. Now FTX is toast, he’s divorced and he’s somehow back playing for the Tampa Bay Buccaneers despite already announcing a retirement. The lesson here may be: careful how you invest. And if you’re famous: what you promote.