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

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

FTX, Alameda Research Commercial Company, West Realm Series, and 130 affiliated companies filed for bankruptcy protection late last week, just days after another cryptocurrency exchange withdrew from a deal to acquire it and pointed to red flags raised during its due diligence. The troubled 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 the reins over to former Enron liquidator John J. Ray III. Bankman-Fried and the firm have been accused of secretly transferring FTX client funds to his trading firm, according to Reuters.

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

Redwood 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 Nov. 9 on Twitter.

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

The other FTX position was equivalent to “less than 1% of the SCGE Fund’s as of 09/30/2022 portfolio (at fair value),” according to Sequoia Capital.

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

Softbanks

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

This illustrative photo shows a smartphone screen displaying the logo of FTX, the cryptocurrency exchange platform, with a screen displaying the FTX website in the background in Arlington, Virginia on February 10, 2022. – Sam Bankman-Fried he put on a suit and you ((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 a smaller investment, less than $100 million, was given to FTX by the company. Anonymous sources told Reuters and Bloomberg that SoftBank plans to 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 an agreement with FTX in June 2021 in which he became an ambassador and she became a consultant on environmental and social initiatives, FTX announced in a press release Thursday. era.

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)

FTX BANKRUPTCY INVOLVES ITS SPORTS AND CELEBAR INVESTORS

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

Due to the exchange filing for bankruptcy, the equity holdings in the company lost value.

Stefano Curry

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

Stefano Curry

SAN FRANCISCO, CALIFORNIA – NOVEMBER 07: Stephen Curry No. 30 of the Golden State Warriors stands on 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 ambassadorship deal, Curry received an equity stake in the company, FTX said at the time. His foundation has also reportedly agreed to collaborate on some charitable efforts.

Customers

It is currently unclear how many FTX customers have been affected.

Court documents recently filed in a US bankruptcy court by FTX lawyers suggest that more than 1 million creditors could be affected. The company said there were 100,000 creditors, most of whom are customers, that it was aware of, FOX Business reported earlier.

WHO IS REALLY TO BLAME FOR FTX CRYPTO COLLAPSE?

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

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

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