Athletes, venture capital firms, are other victims of the FTX collapse

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

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

LARRY SUMMER: FTX could be ENRON

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

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

Sequoia Capital

Sequoia Capital had “limited” exposure to FTXwith one fund having invested $150 million in FTX.com and FTX USA and another investing $63.5 million, according to note venture capital firm sent to limited partners and shared November 9 on Twitter.

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

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

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

SoftBank

SoftBank has participated in FTX fundraising rounds in the past, including contributing to the series C that brought in $400 million for the cryptocurrency exchange, according to press release at the end of January.

FTX

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

MarketWatch reported Friday that the executive of SoftBank, Yoshimitsu Goto, said a minor investment, in $ 100 million, has been given to FTX by the company. An unnamed source said Reuters and Bloomberg that SoftBank has plans to possibly write it off as a total loss.

Tom Brady and Gisele Bündchen

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

Tom Brady laughed

Tom Brady #12 of the Tampa Bay Buccaneers, walks onto 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)

Bankruptcy FTX EMBROILS SPORTS, CELEB Investor

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

Due to the stock exchange filing for bankruptcy, the equity stake in the company has lost value.

Stephen Curry

Stephen Curry, point guard for Golden State Warriors, signed a “long-term partnership” with FTX back in September last year. He became a global ambassador for FTX, a role intended 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 stands on the court during the game against the Sacramento Kings at Chase Center on November 07, 2022 in San Francisco, California. NOTE For users: users are declared ((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 has also reportedly agreed to partner in several charitable endeavors.

Customer

Just how many FTX customers are affected remains unclear at this time.

Court documents were recently submitted to a US bankruptcy court by FTX legal experts suggested more than 1 million creditors may be affected. The company says there are 100,000 creditors – most of whom are customers – that they know of, FOX Business reported previously reported.

WHO IS REALLY TO BLAME FOR THE FTX CRYPTO COLLAPSE?

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

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

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