Steph Curry and Naomi Osaka join Tom Brady among sporting stars who are told their FTX investments are now ‘WORTHLESS’ as the Crypto giant’s CEO begs for $4bn to remain solvent
- Steph Curry and Naomi Osaka previously agreed to deals with the now massively struggling FTX
- The company is facing a massive financial hole as concerns about the company’s financial health mounted and Changpeng ‘CZ’ Zhao, the rival boss of Binance, said he planned to takeover the company
- Tom Brady and ex-wife Gisele Bundchen also had invested in the company
- And the Golden State Warriors and Miami Heat were involved with the crypto exchange as well, with the latter’s FTX naming rights potentially in jeopardy
- Click here for all your latest international Sports news from DailyMail.com
Steph Curry and Naomi Osaka are among the athletes who have lost money in the recent crash of FTX, as the market value of the exchange tanked 70 percent this week – as Tom Brady and Gisele Bundchen also stand to lose a significant amount from their FTX investment.
Curry inked a partnership with FTX in September 2021 – his first in the crypto space – and shared his excitement over the deal in a press release at the time.
‘I’m excited to partner with a company that demystifies the crypto space and eliminates the intimidation factor for first-time users,’ he said.
Osaka, meanwhile, took an equity stake in FTX in March, which was described as a ‘long-term’ contract that would pay her in cryptocurrency.
But the pair’s partnerships with FTX now appear to be worthless, with the rapidly deteriorating company needing $4 billion to remain solvent, and an early investor of the company marking its investment down to $0.
‘In recent days, a liquidity crunch has created a solvency risk for FTX,’ venture capital firm Sequoia wrote in a note to partners, as reported by The Guardian.
‘The full nature and extent of this risk is not known at this time. Based on our current understanding, we are marking our investment down to $0.’
And Osaka and Curry are not the only people in the sports world who are affected by FTX’s crash.
Naomi Osaka took an equity stake with the popular crypto exchange in March of this year
Steph Curry inked a partnership with FTX in September 2021, though details were undisclosed
Brady and ex-wife Bundchen signed an equity deal with the company last year, even appearing in commercials for the exchange with the star quarterback.
And they also stand to lose money a significant amount from their doomed investment, as FTX’s CEO Sam Bankman-Fried lost an estimated $14.6bn – 94 percent of his net worth – in a matter of days, according to Bloomberg.
Curry’s Warriors also have involvement with FTX, as the exchange agreed to pay the team $10million in December 2021 in an international rights sponsorship, as CNBC reported at the time.
The market value of FTX crashed by a staggering 70% this week
In the deal, FTX obtained in-arena signage at the Chase Center, brand placements with the club’s G League and NBA 2K esports team, as well as rights to the team’s NFTs.
In March 2021, FTX also agreed to a deal with the Miami Heat for their arena’s naming rights for $135 million over 19 years.
However, Miami-Dade County now says it will explore ‘all legal remedies’ if FTX cannot pay its arena naming rights deal, The Information reported.
FTX faces even more problems after its biggest rival Binance said it would abandon a proposed bailout after Changpeng ‘CZ’ Zhao, the company’s boss, previously indicated his plans to take over the struggling company.
That announcement came just a day after Binance signed a letter of intent to acquire FTX’s non-US assets in a deal to rescue the rival exchange, the world’s fourth largest, from potential insolvency.
But the plan was subject to due diligence, and Binance reportedly found a financial ‘black hole’ in FTX’s books — a gulf between assets and liabilities that made the takeover a non-starter.
On Thursday, FTX also suspended onboarding of new clients as well as withdrawals until further notice.
The company also asked clients to avoid depositing their funds in a message posted to their website.