New England Patriots owner Robert Kraft and his former golden boy Tom Brady have lost their whole investment in the cryptocurrency exchange FTX trading, after it went bankrupt on Monday.
Crypto continues to be a popular trading area in the modern day, and it's since been advertised in sport, with FTX even securing the naming rights to NBA side Miami Heat's arena. However, FTX has filed for bankruptcy, leaving many A-list celebrities and wealthy business people out of pocket.
The exchange was said to be valued at $32billion (£26bn) at one stage, but now those who bought in have been left empty handed. Brady held 1.1m shares in FTX, while Kraft had shares not only through his personal name, but also one of his companies.
It's not known how much their shares were previously worth, and it's fair to say that the investors may not wish to find out after they've been left with nothing. But not only did Brady and ex-wife Gisele Bundchen invest into the company, they received equity shares for endorsing it.
Founder of FTX, Sam Bankman-Fried, received a total of $400m in investments as the company was valued at the huge total of £26bn. But it's since collapsed and last month the United States government filed criminal and civil charges against the founder of FTX, accusing him of financial fraud.
It's not just Brady, his ex-wife and the Patriots owner who have missed out though, as NBA side Miami Heat have now removed the exchange as their sponsor. Fellow NBA side Golden State Warriors were even on the receiving end of a lawsuit by user Elliott Lam, who accused them of fraudulently promoting the now-bankrupt crypto exchange.
Other investors to miss out include Sequoia Capital and Tiger Global Management, with a big chunk of losses coming from Toronto, Canada. The Ontario Teachers' Pension Plan, which previously owned Toronto sports teams such as the Toronto Maple Leafs of the NFL, Toronto Raptors in the NBA, and Toronto FC who play in MLS, also bought in.
The accused Bankman-Friend is facing as many as eight federal charges, but has pleaded not guilty on all counts. Crypto continues to be one of the most volatile trading methods, with some success stories.
If you bought into Bitcoin during the early stages, it's unlikely you'll ever have to work again, as that currency is one of the standout success stories. But many have crashed since then, with billions of mainstream currency being lost with it.
