What will happen to Tom Brady's FTX shares that were once valued at $45 million?

As a result of his company filing for Chapter 11 bankruptcy protection, Sam Bankman-Fried lost $16 billion. Is he going to lose a lot of money from his highest-profile investors?

‍

In just a few days after FTX filed for chapter 11 bankruptcy protection in late 2017, Sam Bankman-Fried lost his entire $16 billion fortune.

‍

Since the interest in crypto and crypto exchanges has grown exponentially in recent years, more high-profile individuals have invested in FTX, including professional athletes and other entertainment personalities.

‍

Tom Brady, now retired from the NFL, is one of them.

‍

The couple received some crypto as well as equity stakes in FTX after Brady won his seventh Super Bowl in 2021. Bundchen served as FTX's advisor for environmental and social initiatives. A number of TV commercials starring the two were also produced for the company. The commercial with Brady has since been removed from FTX's YouTube channel.

‍

“Crypto-world is an incredibly exciting place right now, and Sam and the FTX team continue to inspire me with the endless possibilities,” Brady said back in 2021. As a result of this opportunity, we learned how important it is to educate the public about the power of crypto while simultaneously providing support to our communities and world. I'm looking forward to seeing what we can create together here."

‍

FTX's shares are valued at about $45 million, according to the New York Post and Forbes, while Brady's are valued at about $25 million.

‍

A few months after Brady and Bündchen's deals were announced, FTX raised capital at a $32 billion valuation.

‍

The future of Brady and Bündchen's shares is unclear, but it seems unlikely that the couple will receive any kind of payment. Stockholders are last in line for a refund if the company files for bankruptcy, according to the SEC.

‍

The Tampa Bay Buccaneers were eliminated from the playoffs on Jan. 16, which sparked speculation that Brady had played his final NFL game and would begin his $375 million career as a TV broadcaster.

‍

A stake in FTX will also be granted to Steph Curry, the NBA champion of the Golden State Warriors.

‍

According to John Ray, the new CEO of FTX, the company will not be able to recover all its losses.

‍

A MarketWatch request for comment on this story was not responded to by Curry, Brady, Bündchen, or FTX.

‍

Other high-profile investors in FTX include Jayden Lawrence of the Jacksonville Jaguars, Shohei Ohtani of MLB, Naomi Osaka of tennis, and Kevin O'Leary of Sharktank.

‍

Additionally, Major League Baseball contracted with FTX to wear its logo on umpires' shirts during games. A stadium named "FTX Arena" was renamed in 2021 by the NBA's Miami Heat. There was no mention of an equity stake in FTX in the news releases for the MLB and Heat, unlike the announcements for the athletes mentioned above.

‍

In January, Miami-Dade County's naming rights deal with FTX was terminated by a federal bankruptcy judge. 

‍

Financial groups backing FTX include Tiger Global, Sequoia Capital, Third Point Ventures, and SoftBank 9984, +1.79%, according to The New York Times.

‍

FTX halted withdrawals earlier last November due to a multibillion-dollar liquidity crunch. FTX's financial problems were beyond the control or ability of rival crypto exchange Binance at one time, which decided against a takeover.

‍

“Celebrity CEOs and crypto entrepreneurs are both involved in this space,” said Gary Gensler, chairman of the Securities and Exchange Commission. 

‍

FTX's situation was addressed by Bankman-Fried in a viral Twitter thread. He apologized again. "I'm really sorry that this happened," he said. "Let's hope things can turn around."

‍

The price of bitcoin BTCUSD, 0.38% has fallen by over 37% in the past year, and the price of ether ETHUSD, +0.21% has fallen by over 40% in the same period. A total market cap of $1 trillion was achieved by all cryptos in 2021 before falling to almost $3 trillion today.