Tom Brady’s difficult 2022 has gotten worse, as the Bucs star and his ex-wife Gisele Bundchen have been caught up in the crash of cryptocurrency exchange FTX.
FTX saw more than $6billion in withdrawals in the 72 hours leading up to Tuesday, and the market value of the exchange crashed by 70 percent this week as concerns about its financial health mounted.
The company’s CEO Sam Bankman-Fried lost an estimated $14.6bn – 94 percent of his net worth – overnight, according to Bloomberg, after FTX struck a bailout deal with rival company Binance.
While neither Brady or Bundchen are expected to see losses to the magnitude of Bankman-Fried, the company’s recent developments could certainly leave a dent.
The ex-couple took an equity stake in the company last year, with Brady announced as a brand ambassador and Bundchen an environmental and social initiatives adviser.
The ex-couple’s net worth is estimated to be $650million, according to CelebrityNetWorth.com.
‘It’s an incredibly exciting time in the crypto-world, and Sam and the revolutionary FTX team continue to open my eyes to the endless possibilities,’ Brady said in a press release at the time.
The crash of FTX comes as other cryptocurrencies have tumbled as well.
Bitcoin, the biggest cryptocurrency, was down 11 percent on the day on Wednesday morning, at $17,448.70, after plunging 10 percent the day prior in its worst day since mid-August.
Ethereum suffered as well, losing nearly 18 percent on the day.
Experts called the shock collapse of FTX another ‘alarm warning’ for the battered cryptocurrency market and said investors should be cautious for a while.
‘This is another black eye for the industry,’ said David Holt, a cryptocurrency industry expert at CFRA.
Binance’s billionaire boss Changpeng ‘CZ’ Zhao shocked the $1trillion crypto industry with a move to take over troubled exchange FTX, which is led by his chief rival and onetime disciple Bankman-Fried.
Zhao helped spark an exodus of users from the three-year-old FTX.com exchange by actively undermining confidence in its finances, and Bankman-Fried has seen 94 percent of his net worth wiped out as a result.
On Sunday, Zhao tweeted that Binance would sell its $2bn of holdings of FTX’s in-house digital token FTT, citing ‘recent revelations that have come to light’.
He did not specify the allegations, but his intervention came just days after pseudonymous crypto researcher Dirty Bubble Media had accused another of Bankman-Fried’s companies, Alameda Research, of insolvency.
FTT, the smaller token tied to FTX, was down a further 23 percent, after collapsing 72 percent on Tuesday. Its market cap dropped below $600m, down from around $3bn at the start of the week, according to CoinGecko data.
‘This particular opportunity showed us the importance of educating people about the power of crypto while simultaneously giving back to our communities and planet,’ Brady said in 2021.
Brady and Bundchen even appeared in commercials for the company in 2021.
The potential losses for Brady come after the quarterback’s recently announced divorce from Bundchen.
The couple confirmed their split on October 28 after weeks of speculation.
On the field, it hasn’t been much better for the seven-time Super Bowl winner, either.
The Buccaneers are just 4-5 after snapping a three-game losing streak last weekend with the quarterback starring.
Brady has averaged nearly the lowest yards per attempt (6.4) of his career and he’s tossed multiple touchdowns in just one game so far.
The Bucs struggles this season raised questions as to whether Brady should have reversed his decision to retire earlier this year.
Brady announced that he was retiring from the NFL in February, only to turn around a few weeks later and U-turn on the decision.
The quarterback wanted to give the buyer – who paid $518,000 for his ‘final touchdown pass’ football just hours before he announced he was coming out of retirement –
Many believed that Brady re-entering the NFL became a bone of contention for Bundchen. A source confirmed to DailyMail.com in late-September that their physical separation was not impacted by Brady’s move to rejoin his beloved sport.
Last month Brady and Bundchen announced their divorce. The Bucs star said it had been a ‘difficult’ and ‘painful’ decision that the pair reached after ‘much consideration’.
Gisele said: ‘To end a marriage is never easy… we have grown apart.’ She said she ‘wishes the best’ for Brady but confirmed the pair had ‘grown apart’.
‘I feel blessed for the time we had together and only wish the best for Tom always,’ she said.
Both said they would continue to co-parent their two children together.’ The couple are expected to share custody of their two children, Vivian, nine and Benjamin, 12. Tom also has a third son, 15-year-old son Jack with ex Bridget Moynahan.