Victims of the FTX collapse include athletes, venture capital firms and others


FTX, one of the largest cryptocurrency exchanges in the world, collapsed quickly.

FTX, trading company Alameda Research, West Realm Series, and 130 related companies filed for bankruptcy protection late last week, days after another cryptocurrency exchange pulled out of a deal to acquire it and pointed to red flags raised during due diligence. The troubled company also reportedly faces potential government investigations.

LARRY SUMMERS: FTX COULD BE ENRON

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

Here are some eInstitutions and individuals potentially affected by the collapse of the FTX.

Sequoia Capital

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

“FTX is not a top ten position in the fund, and our $150 million expense base represents less than 3% of the fund’s invested capital,” Sequoia said of its Global Growth Fund III investment. “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.”

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

The venture capital firm said it had decided to “reduce our equity to $0”.

SoftBank

According to a press release issued in late January, SoftBank has participated in FTX fundraising rounds in the past, including a $400 million Series C contribution for the cryptocurrency exchange.

This illustration photo shows a smart phone screen displaying the logo of cryptocurrency platform FTX with the screen showing the FTX website in the background on February 10, 2022 in Arlington, Virginia. – Sam Bankman-Fried wore a suit and T-shirt. ((Photo by OLIVIER DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images) / Getty Images)

SoftBank CEO Yoshimitsu Goto said less than $100 million was invested by the company in FTX, MarketWatch reported Friday. SoftBank likely plans to write it off as a comprehensive loss, unnamed sources told Reuters and Bloomberg.

Tom Brady and Gisele Bundchen

Tampa Bay Buccaneers quarterback Tom Brady and his now-wife Gisele Bundchen reached an agreement with FTX in June 2021 in which he became an ambassador and she became a consultant on environmental and social initiatives, FTX said in a press release at the time.

Tom Brady smiles

Tampa Bay Buccaneers quarterback Tom Brady 12 takes 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)

FTX BANKRUPTCY ATTRACTED FAMOUS INVESTORS

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

Shares in the company lost value due to the exchange’s filing for bankruptcy.

Stephen Curry

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

Stephen Curry

SAN FRANCISCO, CALIFORNIA – NOVEMBER 07: Stephen Curry #30 of the Golden State Warriors stands on the court during the 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)

FTX said at the time that Curry bought an equity stake in the company for the embassy contract. It is reported that his foundation has also agreed to partner in some charity work.

Customers

It is not yet clear how many FTX customers are affected.

Court documents recently filed in US bankruptcy court by FTX lawyers suggested that more than 1 million creditors could be affected. The company said it has 100,000 lenders, mostly customers, as FOX Business previously reported.

FTX WHO IS TO BLAME FOR THE CRYPTO CALL?

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

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





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