Who lost money in FTX? Tom Brady, Kevin O’Leary and more

The opinions expressed by Entrepreneur contributors are their own.

Additional reports by Sherin Shibu.

The collapse of Sam Bankman-Fried’s FTX The crypto empire was not only felt by deep members of the crypto community: some high-profile entrepreneurs and celebrities also lost a lot of money.

Even if SBF would have led investors to believe that it could bring them high returns with little risk, more than a million people may have been affected by the collapse, and big-spending cryptocurrency newbies quickly discovered that crypto trading is not for the faint of heart.

RELATED: Sam Bankman-Fried sentenced to 25 years in prison for multi-billion dollar crypto fraud

In NovemberBankman Fried was found guilty Seven charges of fraud, embezzlement and criminal conspiracy for orchestrating “one of the largest financial frauds in American history” after a bank run revealed an $8 billion hole in company accounts and a piggy bank relationship with crypto trading firm Alameda Research.

Bankman-Fried was sentenced Thursday in Manhattan federal court to 25 years in prison.

Lewis Kaplan, judge for the Southern District of New York said that Bankman-Fried was “extremely intelligent” and agreed with prosecutors that Bankman-Fried “wanted to be an extremely influential person politically in this country.”

Kaplan declared that the amount of losses for the victims of Bankman-Fried’s crimes exceeded $550 million and that investors lost billions.

Meanwhile, new FTX CEO John Ray, who replaced SBF after the company filed for bankruptcy, said the company had located $5 billion in cash and other assets and that while it had not finished uncovering the discovered funds, she also planned to sell over $4.6. billion dollars in additional assets as well.

It is unclear how the recovered funds will be distributed, but typically in bankruptcy proceedings, only bondholders are eligible to recoup a portion of their losses, while those who have shareholdings are left distraught, according to Market insider.

Sequoia Capital likely suffered the biggest loss for an outside investor in the stock market with its $200 million investment, which peaked at $350 million in January 2022, according to data obtained by Forbes.

RELATED: Who is the founder of FTX, Sam Bankman-Fried?

While Sequoia reportedly told investors that its FTX investment was offset by its $7.5 billion in realized and unrealized gains, Singaporean investment firm Temasek was not so lucky.

The company reportedly invested $210 million for 1% of FTX and $65 million for 1.5% of FTX US, but has since set its stake to zero.

Additionally, investment firm Paradigm reportedly invested $215 million, while the Ontario Teachers’ Pension Plan invested $75 million and has since reduced its investment to zero.

Here’s a look at some of the famous faces who lost big during the FTX crypto collapse.

Tom Brady

Tom Brady is the most famous face to promote and invest in FTX – and he may also have suffered the biggest individual loss. The Tampa Bay Buccaneers quarterback owned more than 1.1 million shares of FTX Trading common stock, which was worth about $45 million before the company’s bankruptcy, according to Bloomberg.

While his investment is now zero after the collapse, he has already advocated for the exchange and appeared in several promotional ads with his now ex-wife Gisele Bündchen.

Gisele Bundchen

Along with her now ex-husband, Tom Brady, the model also lost a significant portion of her wealth in the swap. Bündchen reportedly owned 680,000 FTX shares, valued at approximately $25 million.

Kevin O’Leary

The Shark Tank entrepreneur was a staunch defender of SBF’s FTX before the crypto exchange’s collapse. Like a paid company spokesperson, O’Leary held 32,000 shares of FTX and 110,000 shares of FTX US. He said his shares were valued at $1 million at a U.S. Senate banking committee in December, adding that he’s had it since “set them to zero“.

O’Leary said CNBC’s “Squawk Box” in December, he received around $15 million to act as a paid spokesperson for the brand and invested just under $10 million in the crypto exchange. But he said his crypto investment is now zero.

Robert Kraft

New England Patriots owner Robert Kraft was also a victim of FTX. He reportedly owned approximately 630,000 shares in total related to FTX through KPC Venture Capital LLC, an entity linked to the Kraft Group.

Using O’Leary’s valuation, the NFL team owner could have lost an eight-figure investment.

Robert Belfer

Billionaire oil baron Robert Belfer, who was once known as the heir to bankrupt gas company Enron, also reportedly lost millions with the collapse of FTX. Two companies linked to the Belfer family owned shares in FTX and FTX US for a combined stake of $34.5 million, according to court documents obtained by the court. Financial Times. Belfer was also notably involved in Bernie Madoff’s Infamous Ponzi Scheme.

Anthony Scaramucci

Donald Trump’s former communications director was also involved in the collapse of FTX with his alternative investment firm, SkyBridge Capital. Last September, FTX acquired 30% of SkyBridge Capital, according to The streetand although the details of the deal are unknown, Scaramucci said it was also lost despite the purchase.

“We lost money in general because the overall portfolio is shrinking because of this debacle, so yeah, I guess so,” he said when asked about the November collapse on Bloomberg New Economy Forum in Singapore.

RELATED: ‘I didn’t steal any funds, and I certainly didn’t hide billions’: Sam Bankman-Fried speaks out for the first time since his arrest

Stephen Curry

Stephen Curry has been one of the many celebrities to support FTX with its various advertisements and its 2021 partnership with the brand. Like Brady and Bündchen, Curry also earned a stake in FTX for his work at the company.

Curry’s team, The Golden State Warriors were also embroiled in scandal after FTX agreed to pay $10 million for an international rights deal. sponsorship agreement which gave the exchange in-area signage, exclusive brand placements, and the rights to the team’s NFTs in December 2021.

Curry is also named in a class action lawsuit that claims celebrities who supported FTX participated in deceptive schemes to “induce trust and trick consumers into investing in what was ultimately a Ponzi scheme,” according to the lawsuit.

Sam Bankman-Fried, Tom Brady, Gisele Bundchen, Kevin O’Leary, Shaquille O’Neal, Udonis Haslem, David Ortiz, William Trevor Lawrence, Shohei Ohtani, Naomi Osaka and Larry David were also mentioned in the suit.

Naomi Osaka

Tennis star Naomi Osaka also signed a long-term partnership deal with FTX in March that was supposed to help bring women into the crypto world, according to Reuters. She received an equity stake in the company and received compensation in the form of crypto.

David Ortiz

Red Sox baseball legend David Ortiz also signed on to become an FTX ambassador in October 2021 and agreed to be paid in cryptocurrency, according to CoinDesk. At the time, he agreed to publish several NFT collections, while FTX agreed to sponsor the David Ortiz Celebrity Golf Classic and make a donation to David Ortiz’s Children’s Fund. It is unclear whether the fund will be required to refund donations if they are found to have been made with clients’ money.

Check out our Dirty Money podcast for our take Crypto scammer Sam Bankman-Fried.

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