Crypto endorsement

Tom Brady cannot avoid the limelight, as his family troubles and conduct on the field have developed into some of the juiciest topics for the press in recent weeks. While the news of Tom Brady’s divorce may not be a shock to most fans, his involvement in the FTX bankruptcy may prove to be less well known. Due to Tom Brady and Gisele Bundchen’s prior support of FTX, the NFL star’s attachment to his ex-wife now extends beyond the custody arrangement of their two children. An FTX investor has filed a lawsuit against the company founder, naming individual celebrities that have endorsed the cryptocurrency business.

The Bahamas-based exchange group was first established in 2019 and escalated to impressive success in 2021. Within the past few weeks, however, its founder, Sam Bankman-Fried, resigned from his position as the company’s CEO. The company, which is valued at $32 billion, has entered a bankruptcy filing, subsequently shattering the confidence of investors and poorly impacting financial aspects for customers. Compared to Bernie Madoff, Bankman-Fried has been credited with cleverly marketing his company to investors in ways that have prevented them from noticing any alarming business tactics.

Now, the plaintiff in the lawsuit is not only suing Bankman-Fried but also is accusing the persuaded celebrities of promoting or sponsoring unregistered securities and thus engaging in deceptive business practices. While FTX as the company is not being sued, direct individuals have been named. Based on the bankruptcy filing and the fact that $10 billion worth of customer crypto assets have been transferred from FTX to Bankman-Fried’s trading company, Alameda Research, it may prove difficult for the plaintiff to successfully name FTX as a defendant in the lawsuit. Tom Brady’s future involvement in the case is uncertain, as the nature of his endorsement is more complicated than sponsoring a sandwich chain.