Meet the Celebrities and Big Businesses Who Lost Big in the FTX Collapse
JThe collapse of the FTX cryptocurrency exchange has cost a host of people and organizations a substantial amount of money.
FTX, the crypto exchange founded by Sam Bankman-Fried, filed for bankruptcy on Friday. The company’s value plummeted after it made Bankman-Fried a multi-billionaire and a top Democratic donor. But Bankman-Fried isn’t the only one hurt by his company’s collapse. Several well-known celebrities and companies are affected by the state of the business and could lose millions.
Here is a list of FTX drop losers.
THE BACKGROUND TO FTX’S SPECTACULAR COLLAPSE IN BANKRUPTCY
Brady and Bundchen: Tom Brady and his ex-wife Gisele Bundchen joined a cohort of celebrity investors in FTX in 2021, receiving substantial stakes in return. The Tampa Bay Buccaneers quarterback has probably lost most, if not all, of his own. Brady was featured in an advertisement promote 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 deals with FTX to promote the company.
Investment firms: Several top investment firms are also notable losers. Silicon Valley-focused venture capital fund Sequoia Capital held a 1% stake in the company, once estimated at around $200 million, according to Forbes. FTX also had investments from Singapore-based investment firm Temasek and crypto-focused investment firm Paradigm.
Political Action Committees: Bankman-Fried was heavily involved in politics and was identified as the second-biggest contributor to Democratic politics this year. With the crypto billionaire’s finances melting away, this will leave many PACs without funding in the future, which could have significant implications for future Democratic campaigns.
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Philanthropic actions: FTX’s founder was a proponent of “effective altruism,” a movement geared toward objective data to determine the effectiveness of charitable efforts. A number of groups involved in effective altruism have been endangered by the collapse of FTX. Bankman-Fried has also donated millions to several nonprofit opportunities through the FTX Future Fund and Building a Strong Future, supported the anti-disease group Guarding Against Pandemics, run by his brother, and provided funds to charities. press groups such as Voice, ProPublicaand 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.