How FTX bankruptcy could impact big-name athletes and celebrities
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Coinbase CFO Alesia Hass discusses the chaos surrounding crypto exchange FTX and if there are any suitors ready to buy the distressed company on ‘The Claman Countdown.’
With cryptocurrencies plunging and cryptocurrency exchange FTX Trading filing for bankruptcy, big celebrity names that inked deals with the company — including Tom Brady, his ex-wife Gisele Bündchen and Boston Red Sox legend David Ortiz — may now find themselves passengers aboard a sinking ship.
The Chapter 11 process will include Alameda Research, West Realm Series and 130 affiliated companies, according to a Friday announcement. This all came after rival crypto exchange Binance, who briefly agreed to step in, bailed, citing red flags that came up during the due diligence process.
Embattled CEO Sam Bankman-Fried has resigned, following a lengthy apology in a series of tweets. John J. Ray III has been appointed CEO in his stead.
Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange, appears at the Bloomberg Crypto Summit in New York. On Friday, his net worth was estimated at zero after being worth billions of dollars days earlier. (Jeenah Moon/Bloomberg via Getty Images / Getty Images)
The FTX website still touts professional athletes and teams as "some of the world's biggest names who trust FTX."
With billions evaporated, it's unclear if investors, customers and backers will see any of their funds.
FTX FILES FOR BANKRUPTCY, CEO BANKMAN-FRIED RESIGNSTom Brady and Gisele Bndchen
Tom Brady and Gisele Bndchen attend the 2019 Met Gala celebrating “Camp: Notes on Fashion” at the Metropolitan Museum of Art in New York City on May 6, 2019. (Taylor Hill/FilmMagic / Getty Images)
Brady is an FTX shareholder and global ambassador. Last year, FTX said he and his former spouse would become ambassadors, with Bündchen advising FTX on "environmental and social initiatives.
"They will each be taking an equity stake in FTX Trading Ltd as well, and we are more than happy for them to dive into the industry with their newly opened Blockfolio accounts!" FTX wrote.
The pair also filmed a commercial for FTX in 2021. Trevor Lawrence
Jacksonville Jaguars quarterback Trevor Lawrence leaves the field after a game against the Las Vegas Raiders at TIAA Bank Field in Jacksonville, Florida, on Sunday. (David Rosenblum/Icon Sportswire via Getty Images / Getty Images)
Jacksonville Jaguars quarterback Trevor Lawrence — the No. 1 draft pick in the 2021 NFL Draft — signed a multiyear sponsorship contract with FTX last spring.
The partner and ambassador received a substantial amount of the signing bonus in cryptocurrency in what FTX called a "first-of-its-kind endorsement."Stephen Curry
Stephen Curry of the Golden State Warriors stands on the court during a game against the Sacramento Kings at Chase Center in San Francisco on Monday. (Ezra Shaw/Getty Images / Getty Images)
Golden State Warriors star Stephen Curry is a global ambassador and a partner for marketing and philanthropic initiatives.
FTX started a long-term partnership with the NBA champion and said that Curry would receive an equity stake in FTX.
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Curry's foundation, Eat.Learn.Play., would partner with FTX on charitable initiatives, and FTX helped facilitate Curry's first-ever NFT drop.
The "Splash Bro" also starred in an FTX ad earlier this year.
FTX also became the Warrriors' official cryptocurrency platform and NFT marketplace.Naomi Osaka
Naomi Osaka talks to the media after opponent Daria Saville had to retire from their first round match on Day 2 of the Toray Pan Pacific Open at Ariake Coliseum in Tokyo, Japan, on Sept. 20, 2022. (Robert Prange/Getty Images / Getty Images)
A four-time Grand Slam singles champion and recipient of seven titles on the Women's Tennis Association Tour, Naomi Osaka is an FTX shareholder and ambassador.
In a blog post, Osaka said the tennis star wore the company's logo during her matches and would focus on bringing women onto the platform and Web3 diversity. Shaquille O’Neal
Shaquille O’Neal attends an NBA preseason game between the Atlanta Hawks and the Milwaukee Bucks at Etihad Arena in Abu Dhabi, United Arab Emirates, on Oct. 8, 2022. (Francois Nel/Getty Images / Getty Images)
Four-time NBA championship winner Shaquille O'Neal is an FTX shareholder and ambassador.
He appeared — wearing a wig — in a promotional Twitter video.Shohei Ohtani
Shohei Ohtani of the Los Angeles Angels prepares for a game at Angel Stadium of Anaheim in Anaheim, California, on Oct. 2, 2022. (Ronald Martinez/Getty Images / Getty Images)
Los Angeles Angels pitcher Shohei Ohtani entered into a long-term partnership with the star pitcher and hitter.
"We are truly honored to be working with such an amazing athlete, and to bring him onto our cap table as an investor. We look forward to working with Shohei on bringing the FTX brand to his burgeoning fanbase, as well as on a number of charitable aspects that Shohei is particularly interested in," FTX said in a statement.
CLICK HERE TO READ MORE ON FOX BUSINESSDavid Ortiz
Inductee David Ortiz gives his speech during the Baseball Hall of Fame induction ceremony at Clark Sports Center in Cooperstown, New York, on July 24, 2022. (Jim McIsaac/Getty Images / Getty Images)
FTX said last year that retired MLB star David "Big Papi" Ortiz had signed a multiyear deal to become an ambassador. Udonis Haslem
Udonis Haslem of the Miami Heat looks on during a game against the Sacramento Kings at Golden 1 Center in Sacramento, California, on Oct. 29, 2022. (Rocky Widner/NBAE via Getty Images / Getty Images)
The Miami Heat's Udonis Haslem was also listed as an ambassador, joining as part of the "You in, Miami?" campaign.
Since the announcement, some outlets have reported that several people have lost money from investments.
That includes Brady, O'Neal and Curry.
FOX Business Digital's requests for comment from Brady, O'Neal and Curry were not immediately returned.
The unraveling has spooked the crypto market, pushing Bitcoin prices down to the $16,000 level.
The Associated Press contributed to this report.