Tom Brady, Giselle Bündchen, Robert Kraft Among Big Losers in FTX Collapse

Quarterback Tom Brady, his former wife Giselle Bündchen and his former boss, New England Patriots owner Robert Kraft, are listed among the losers in the FTX Group’s bankruptcy court papers.

Brady, who was a prominent FTX booster, owns more than 1.1 million common shares of the collapsed crypto currency exchange, while his supermodel ex holds more than 680,000 shares, Bloomberg reported, citing court documents.

KPC Venture Capital, meanwhile, an entity linked to the Kraft Group, holds more than 110,000 Series B preferred shares in FTX Trading, the entity that owns the disgraced company’s main crypto exchange, Bloomberg reported. The investment firm backed by the Patriots’ owner also holds 479,000 Class A common shares and 43,545 Series A preferred shares in West Realm Shires, an FTX unit that owns the company’s US-based exchange.

Also Read:
Coinbase to Cut 25% of Workforce in Latest Round of Layoffs

Falled FTX founder and CEO Sam Bankman-Fried appears to hold about 109 million Series A preferred shares, 791 million Class A common shares and 1.12 billion Class B common shares.

The court documents list dozens of other holders, from the rival crypto exchange Coinbase, with nearly 4 million Class A common shares, to Wall Street stalwarts like Sequoia Capital with upwards of 27 million across the various classes and activist investor Daniel Loeb’s Third Point, with nearly 11 million common and preferred shares combined. Third-party investors like the Ontario Teachers’ Pension Plan also got burned on about 12 million Class A shares.

It’s not clear if other A-listers were caught up in the spectacular collapse of FTX. Their investment vehicles are often obscured with names that don’t reveal the identities of the people behind them.

Also Read:
Semafor to ‘Redeem’ Sam Bankman-Fried Investment – In Other Words, Return It (Exclusive)

The value of the holdings could not be immediately determined, but Bloomberg said they are “assumed to be practically worthless” because stockholders of bankrupt companies rarely recover losses. U.S. law requires that creditors line up to get repaid in order of priority, putting stockholders on line after those with direct claims.

About a year ago, FTX Trading raised $400 million, valuing the company at $32 billion, Bloomberg noted. Bankman-Fried

The news reinforces comments by John J. Ray III, who took over the company’s restructuring last month, that “we’re not going to be able to recover all of the losses.”

Bankman-Fried was released on a $250 million bond package on Dec. 22 while he awaits trial for fraud and mismanagement over the collapse of FTX, which a U.S. prosecutor called a “fraud of epic proportions.”

Also Read:
4 Winners – and One Loser – of Big Tech 2022 | PRO Insight