With cryptocurrencies plunging and cryptocurrency exchange FTX Trading submitting for chapter, large movie star names that inked offers with the corporate — together with Tom Brady, his ex-wife Gisele Bündchen and Boston Purple Sox legend David Ortiz — might now discover themselves passengers aboard a sinking ship.
The Chapter 11 course of will embrace Alameda Analysis, West Realm Sequence and 130 affiliated corporations, in line with a Friday announcement. This all got here after rival crypto change Binance, who briefly agreed to step in, bailed, citing purple flags that got here up throughout the due diligence course of.
Embattled CEO Sam Bankman-Fried has resigned, following a prolonged apology in a collection of tweets. John J. Ray III has been appointed CEO in his stead.
The FTX website still touts professional athletes and groups as “a number of the world’s largest names who belief FTX.”
With billions evaporated, it is unclear if traders, clients and backers will see any of their funds.
FTX FILES FOR BANKRUPTCY, CEO BANKMAN-FRIED RESIGNS
Tom Brady and Gisele Bündchen
Brady is an FTX shareholder and world ambassador. Final yr, FTX mentioned he and his former partner would develop into ambassadors, with Bündchen advising FTX on “environmental and social initiatives.
“They’ll every be taking an fairness stake in FTX Buying and selling Ltd as properly, and we’re very happy for them to dive into the business with their newly opened Blockfolio accounts!” FTX wrote.
The pair additionally filmed a industrial for FTX in 2021.
Jacksonville Jaguars quarterback Trevor Lawrence — the No. 1 draft choose within the 2021 NFL Draft — signed a multiyear sponsorship contract with FTX final spring.
The associate and ambassador obtained a considerable quantity of the signing bonus in cryptocurrency in what FTX referred to as a “first-of-its-kind endorsement.”
Golden State Warriors star Stephen Curry is a world ambassador and a associate for advertising and marketing and philanthropic initiatives.
FTX began a long-term partnership with the NBA champion and mentioned that Curry would obtain an fairness stake in FTX.
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Curry’s basis, Eat.Study.Play., would associate with FTX on charitable initiatives, and FTX helped facilitate Curry’s first-ever NFT drop.
The “Splash Bro” additionally starred in an FTX ad earlier this year.
FTX additionally grew to become the Warrriors’ official cryptocurrency platform and NFT market.
A four-time Grand Slam singles champion and recipient of seven titles on the Ladies’s Tennis Affiliation Tour, Naomi Osaka is an FTX shareholder and ambassador.
In a weblog put up, Osaka mentioned the tennis star wore the corporate’s emblem throughout her matches and would deal with bringing girls onto the platform and Web3 variety.
4-time NBA championship winner Shaquille O’Neal is an FTX shareholder and ambassador.
He appeared — sporting a wig — in a promotional Twitter video.
Los Angeles Angels pitcher Shohei Ohtani entered right into a long-term partnership with the star pitcher and hitter.
“We’re actually honored to be working with such a tremendous athlete, and to convey him onto our cap desk as an investor. We sit up for working with Shohei on bringing the FTX model to his burgeoning fanbase, in addition to on various charitable points that Shohei is especially keen on,” FTX mentioned in a press release.
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FTX mentioned final yr that retired MLB star David “Huge Papi” Ortiz had signed a multiyear deal to develop into an envoy.
The Miami Warmth’s Udonis Haslem was additionally listed as an envoy, becoming a member of as a part of the “You in, Miami?” marketing campaign.
For the reason that announcement, some retailers have reported that several people have lost money from investments.
That features Brady and Curry.
A spokesperson for O’Neal later instructed FOX Enterprise Digital that, whereas he had a enterprise relationship with FTX, he has no cash tied up in with the cryptocurrency change.
FOX Enterprise Digital’s requests for remark from Brady and Curry weren’t instantly returned.
The unraveling has spooked the crypto market, pushing Bitcoin costs right down to the $16,000 stage.
The Related Press contributed to this report.