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

Athletes, venture capital firms and others among the victims of the FTX collapse
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FTX, one of the world’s largest cryptocurrency exchanges, quickly collapsed.

FTX, trading company Alameda Research, West Realm Series, and 130 affiliated companies filed for bankruptcy protection Late last week, just days after another cryptocurrency exchange withdrew from an agreement to acquire it, citing red flags being raised during due diligence. The ailing company is also reportedly facing potential government investigations.

LARRY SUMMER: FTX COULD BE AN ENRON

Its founder, Sam Bankman-Fried, stepped down from his role as CEO on Friday, handing over the reins to former Enron liquidator John J. Ray III. Bankman-Fried and the company have been accused of allegedly secretly transferring FTX client funds to his trading company, according to Reuters.

Here are some eCompanies and individuals potentially affected by FTX collapse.

Sequoia Capital

Sequoia Capital had “limited” exposure to him FTXwith one fund having invested $150 million in FTX.com and FTX US and the other $63.5 million, corresponding a note the venture capital firm sent to the limited partners and on 9/11 on Twitter.

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

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

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

SoftBank

SoftBank has participated in FTX fundraising rounds in the past, including contributing to Series C that raised $400 million for cryptocurrency exchanges, corresponding a press release from late January.

FTX

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

market observation reported Friday that a SoftBank executive, Yoshimitsu Goto, said the company made a modest investment of less than $100 million to FTX. Unknown sources told Reuters and Bloomberg that SoftBank plans to probably 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 inked a deal with FTX in June 2021, in which he became an ambassador and she became an advisor on environmental and social initiatives, FTX announced in a press release back then.

Tom Brady smiles

Tom Brady #12 of the Tampa Bay Buccaneers enters the field before 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)

The FTX-KONKURS REALIZES ITS SPORTS AND Celebrity Investors

According to the press release, they each acquired an equity interest in FTX and cryptocurrencies as part of the partnership.

Shares in the company have lost value as a result of the stock exchange insolvency application.

Stephen Curry

Stephen Curry, point guard for the Warriors of the Golden State, signed a “long-term partnership” with FTX back in September last year. He became a global ambassador for FTX, a role aimed at “expanding the reach of the FTX brand and introducing the cryptocurrency’s viability to new audiences.” corresponding a publication announcing the deal.

Stephen Curry

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

For his ambassador agreement, Curry received an equity stake in the company, FTX said at the time. His foundation also reportedly agreed to help with some charitable endeavors.

Customers

It is currently unclear how many FTX customers are affected.

Recently Filed Court Documents a US Bankruptcy Court suspected by FTX lawyers that over 1 million creditors could be affected. The company said there are 100,000 creditors – most of whom are customers – that they know, FOX Business previously reported.

WHO IS REALLY GUILTY FOR FTX CRYPTO COLLAPSE?

FTX’s native token, FTT, has also seen a steep drop in value over the past few days. The CEO of Binance, another cryptocurrency exchange, said on Sunday that was the case stopped accepting FTT depositors and others have reportedly delisted the token.

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

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