Why Tom Brady is poised to lose big money investing in FTX, cryptocurrency
When rumors of cryptocurrency exchange FTX’s buyout filtered through the news cycle, the spotlight was fixed firmly on the brand’s most prominent investors.
One of those investors was Buccaneers quarterback Tom Brady, who, along with ex-wife Gisele Bundchen, reportedly put a portion of his wealth into FTX after announcing a partnership with the venture and its CEO, Sam Bankman-Fried, in 2021.
MORE: Brady and Bundchen’s divorce, explained
Brady and Bundchen featured in advertisements promoting the company, which is floundering even more after rival Binance announced Wednesday it would not go ahead with a purchase of FTX after doing “due diligence.” FTX’s valuation reportedly increased from $89 million to $1 billion in 2021.
This commercial with Tom Brady and Gisele Bündchen, encouraging their friends to use FTX, came out last September. pic.twitter.com/SuJamuWcmc
— Dan Diamond (@ddiamond) November 8, 2022
As a consquence of this bubble bursting, the 30-year-old Bankman-Fried — who has more than $10 billion tied up in FTX and crypto research firm Alameda — saw his name wiped from the Bloomberg Billionaires Index, meaning the vast majority of his wealth has likely evaporated.
MORE: Tom Brady opens up about how split with Gisele Bundchen has impacted play
Brady and Bundchen stand to experience a downfall, as well, if their investments into the company were substantial.
Here’s what you need to know about Brady, Bundchen and FTX:
Why did Tom Brady and Gisele Bundchen invest in crypto?
Brady and Bundchen’s investment into cryptocurrency was a sign of the times. They rode the swell of claims that the crypto exchange was foolproof and stable.
The couple got in on the ground floor, first announcing a partnership with Bankman-Fried’s crypto lovechild in 2020, then agreeing to an endorsement deal with FTX in 2021. The deal gave Brady and Bundchen equity in FTX, as well as a signing bonus doled out in cryptocurrency.
BREAKING: Crypto exchange FTX has announced an endorsement deal with Tom Brady & Gisele Bündchen.
Both Brady & Bündchen will receive equity in FTX and a signing bonus in crypto.
In total, FTX has committed to spending over $350M on sports partnerships in the last 6 months alone
— Joe Pompliano (@JoePompliano) June 29, 2021
The contract indicated that FTX would donate millions annually to charity on behalf of Brady and Bundchen, further sweetening the pot.
“Sam and the revolutionary FTX team continue to open my eyes to the endless possibilities” of crypto, Brady said in a statement at the time. Bundchen offered similar messaging: “Cryptocurrency will become more and more familiar to all of us as time goes on.”
FTX isn’t the only crypto holding Brady is locked into. He also helped found Autograph, an NFT startup that makes tokens for the NFL.
MORE: Inside Tom and Gisele’s relationship, from marriage to kids to divorce
How much did Tom Brady and Gisele Bundchen invest in FTX?
It’s unclear how much money Brady and Bundchen placed into FTX. However, given their equity in the company as well as their wealth — per Celebrity Net Worth, Brady and Bundchen are worth a combined $650 million — it seems likely the amount was signficant.
The two now appear headed toward losing the vast majority of the investment. If Bankman-Fried’s loss is any indication, Brady and Bundchen could see a serious reduction in the value of their assets in the coming weeks and months — Bankman-Fried lost his billionaire status overnight.
How does Tom Brady and Gisele Bundchen’s divorce affect their crypto investment?
With the couple recently finalizing their breakup, Brady and Bundchen each figure to feel the brunt of the FTX bust. Once again, it’s unclear how much the couple invested.
Brady is worth an estimated $250 million. Bundchen’s net worth has been estimated at $400 million.