The implosion of FTX could end up forcing the GOAT to sign a large check.
Buccaneers quarterback Tom Brady, who received a piece of FTX as part of a deal to become a brand ambassador, will now be paying the price in the aftermath of the company’s implosion.
Via Matt Baker of the Tampa Bay Times, Brady is one of various defendants in a class-action lawsuit filed Wednesday, five days after FTX landed in bankruptcy.
The suit claims that FTX was essentially a pyramid scam, and that it used celebrities like Brady “to continue funneling investors into the FTX Ponzi scheme, and to promote and substantially assist in the sale of the [accounts], which are unregistered securities.”
Other defendants include Brady’s ex-wife, Gisele Bundchen, Jaguars quarterback Trevor Lawrence, Shaquille O’Neal, Stephen Curry, Shohei Ohtani, and the Golden State Warriors.
Plenty of investors have avoided crypto, due to concerns that it basically is a Ponzi scheme. Early arrivals get in at a low price. Subsequent purchasers drive up the number. The first ones in start cashing out, and then the whole thing eventually falls apart.
Next, when it’s time to pick up the pieces, some of the who got rich quick end up facing tough questions, and incurring potentially significant legal fees. That’s what Brady and others will now be doing.