Meet the celebrities and big businesses that lost big in FTX’s collapse
Meet the celebrities and big businesses that lost big in FTX’s collapseChristopher Hutton
November 15, 03:30 AM November 15, 03:30 AM
The collapse of the cryptocurrency exchange FTX has cost a multitude of people and organizations a substantial amount of cash.
FTX, the crypto exchange founded by Sam Bankman-Fried, filed for bankruptcy on Friday. The company’s value has collapsed after once making Bankman-Fried a multibillionaire and a top Democratic donor. But Bankman-Fried is not the only one hurt by his company’s collapse. Several known celebrities and corporations are affected by the state of the business and may stand to lose millions.
Here’s a list of who is losing out from the fall of FTX.
THE BACKGROUND ON FTX’s SPECTACULAR COLLAPSE INTO BANKRUPTCY
Brady and Bundchen: Tom Brady and ex-wife Gisele Bundchen joined a cohort of celebrity investors in FTX in 2021, receiving substantial equity stakes in exchange. The Tampa Bay Buccaneers quarterback has likely lost most, if not all, of his. Brady was featured in an ad promoting FTX in 2022.
Other athletes: Golden State Warriors guard Stephen Curry, tennis player Naomi Osaka, and Los Angeles Angels player Shohei Ohtani had all signed previous agreements with FTX to promote the company.
Investment firms: Several prominent investment companies are also notable losers. The Silicon Valley-centered venture capital fund Sequoia Capital held a 1% share in the company, once estimated to be valued at around $200 million, according to Forbes. FTX also had investments from the Singapore-based investment firm Temasek and the crypto-centered investment firm Paradigm.
Political action committees: Bankman-Fried was heavily involved in politics and was identified as the second-highest donor in Democratic politics this year. With the crypto billionaire’s finances melting away, it will leave many PACs without funding in the future, which could have significant consequences for future Democratic campaigns.
Philanthropic efforts: FTX’s founder was a proponent of “effective altruism,” a movement oriented toward objective data to determine the effectiveness of charitable endeavors. A number of groups involved in effective altruism have been placed in danger by FTX’s collapse. Bankman-Fried also donated millions to several nonprofit opportunities through the FTX Future Fund and Building a Strong Future, backed the anti-disease group Guarding Against Pandemics, run by his brother, and provided funding to news groups such as Vox, ProPublica, and the Intercept. Two-thirds of a $5 million grant provided by Bankman-Fried to ProPublica has been put on hold while the nonprofit group reviews its finances.