Athletes, venture capital firms, others among the victims of the collapse of FTX

FTX, one of the world’s largest cryptocurrency exchanges, has collapsed rapidly.

FTX, trading company Alameda Research, West Realm Series, and 130 affiliates filed for bankruptcy protection late last week, just days after another cryptocurrency exchange pulled out of an agreement to acquire it, pointing to red flags raised during due diligence. The troubled company is also reportedly facing possible government investigations.

LARRY SUMMERS: FTX MAY BE AN ENRON

Its founder, Sam Bankman-Fried, resigned his position as CEO on Friday, handing over the reins to former Enron liquidator John J. Ray III. Bankman-Fried and company have been accused of secretly transferring funds from FTX clients to his trading company, Reuters reported.

Here are a few eentities and individuals potentially affected by the collapse of FTX.

Sequoia capital

Sequoia Capital had “limited” exposure to FTX, with one fund investing $150 million in FTX.com and FTX US and the other investing $63.5 million. according to a note the venture capital firm sent to limited partners and shared on Twitter on Nov. 9.

“FTX is not in the fund’s top ten and our $150 million cost base represents less than 3% of the fund’s committed capital,” Sequoia said of its investment in the Global Growth Fund III. “The $150 million loss is offset by ~$7.5 billion in realized and unrealized gains in the same fund, so the fund remains in good shape.”

The other FTX position corresponded to “less than 1% of the SCGE Fund’s portfolio as of 9/30/2022 (at fair value),” according to Sequoia Capital.

The venture capital firm said it had decided to “write down our investment to $0.”

Softbank

SoftBank has participated in FTX fundraising rounds in the past, including contributions to the Series C that raised $400 million for the cryptocurrency exchange, according to a press release in late January.

ftx

This illustration photo shows a smartphone screen with the logo of FTX, the crypto exchange platform, with a screen showing the FTX website in the background in Arlington, Virginia on February 10, 2022. – Sam Bankman-Fried put on a suit and ti ((Photo by OLIVIER DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images) / Getty Images)

MarketWatch reported Friday that a SoftBank executive, Yoshimitsu Goto, said the company had made a small investment of less than $100 million in FTX. Unnamed sources told Reuters and Bloomberg that SoftBank has plans to likely write it off as a total loss.

Tom Brady and Gisele Bundchen

Tampa Bay Buccaneers quarterback Tom Brady and his now ex-wife Gisele Bundchen reached a deal with FTX in June 2021 in which he became an ambassador and advisor for environmental and social initiatives, FTX announced in a press release at the time.

Tom Brady laughs

Tom Brady #12 of the Tampa Bay Buccaneers walks onto the field ahead of the game against the Carolina Panthers at Bank of America Stadium on October 23, 2022 in Charlotte, North Carolina. (Grant Halverson/Getty Images/Getty Images)

FTX BANKRUPTCY MISSING ITS SPORTS, CELEB INVESTORS

According to the release, they each took an equity stake in FTX as part of the partnership, as well as cryptocurrency.

The bankruptcy filing has caused equity interests in the company to lose value.

Stephen Curry

Stephen Curry, point guard for the Golden State Warriors, signed a “long-term partnership” with FTX last September. He became a global ambassador for FTX, a role designed to “expand the reach of the FTX brand and tout the viability of cryptocurrency to new audiences,” according to a release announcing the deal.

Stephen Curry

SAN FRANCISCO, CALIFORNIA – NOVEMBER 07: Stephen Curry #30 of the Golden State Warriors takes the field during their game against the Sacramento Kings at Chase Center on November 07, 2022 in San Francisco, California. NOTE TO USER: User expressly ((Photo by Ezra Shaw/Getty Images)/Getty Images)

For his ambassador deal, Curry received an equity stake in the company, FTX said at the time. His foundation also reportedly agreed to collaborate on a number of charitable endeavors.

Customers

How many FTX customers are affected remains unclear at this time.

Court documents recently submitted to a US bankruptcy court by FTX attorneys suggested that more than 1 million creditors could be affected. The company said there were 100,000 creditors — most of whom are customers — that it knew about, FOX Business previously reported.

WHO IS REALLY TO BUILD FTX CRYPTORAIDS?

FTX’s native token, FTT, has also seen its value plummet in recent days. The CEO of Binance, another cryptocurrency exchange, said on Sunday that it has stopped accepting FTT deposits, and others have reportedly removed the token.

FOX Business reached out to Sequoia Capital and SoftBank for comment, as well as a Curry representative. A Brady representative declined to comment.

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