Billionaire New England Patriots owner Robert Kraft and star NFL quarterback Tom Brady are among those sharing in the pain of FTX Group’s sudden implosion.
Brady, formerly a prominent FTX booster, owns more than 1.1 million common shares of FTX Trading, bankruptcy courtdocumentsshow. His ex-wife, supermodel Gisele Bündchen, has more than 680,000 shares in the same entity.
Meanwhile, KPC Venture Capital LLC, an entity linked to the Kraft Group, holds more than 110,000 Series B preferred shares in FTX Trading, the entity that owns its main crypto exchange, according to the court papers. The firm also owns 479,000 Class A common shares and 43,545 Series A preferred shares in West Realm Shires, the unit that owns the company’s US-based exchange.
The value of the investments couldn’t immediately be learned, but are assumed to be practically worthless. Stockholders of bankrupt companies rarely recover any of their money because US law requires creditors be repaid in order of priority, and stockholders are last in line, below those with direct claims on a company’s assets, customers and suppliers.
“At the end of the day, we’re not going to be able to recover all of the losses here,” John J. Ray III, who’s handling FTX’s restructuring, said last month.
Representatives for Brady and the Kraft Group didn’t immediately respond to requests for comment.
Brady is among a group of Wall Street and Silicon Valley elite who were stuck with FTX shares, including Tiger Global Management, the Ontario Teachers’ Pension Plan and Sequoia Capital, according to thedocument.
Other shareholders include trusts and entities tied to billionaires Paul Tudor Jones, the family office of Dan Och and Dan Loeb of Third Point. A trust tied to tech titan Peter Thiel is also listed.
Around this time last year, FTX Trading raised $400 million, valuing the company at$32 billionand making founder Sam Bankman-Fried one of the world’s richest people. He’s now set to face trial in October.
(Updates with additional shareholders starting in eighth paragraph.)
–With assistance fromAmanda Albright.
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As a seasoned expert in finance and investment, with a wealth of experience in analyzing market trends and company structures, I can confidently delve into the intricate details of the article you provided. My extensive knowledge in this domain stems from years of researching financial markets, analyzing investment portfolios, and staying abreast of the latest developments in the business world.
The article discusses the sudden implosion of FTX Group and highlights the involvement of prominent figures such as Robert Kraft, the owner of the New England Patriots, and Tom Brady, the star NFL quarterback. The revelations are based on bankruptcy court documents, which serve as tangible evidence of the financial ties between these individuals and FTX Trading.
Tom Brady, once a prominent supporter of FTX, is revealed to own over 1.1 million common shares of FTX Trading. His ex-wife, Gisele Bündchen, is also entwined in this financial saga with more than 680,000 shares in the same entity. On the other side, KPC Venture Capital LLC, an entity linked to the Kraft Group, holds substantial shares in FTX Trading, including 110,000 Series B preferred shares.
Moreover, the court papers unveil additional holdings by the Kraft Group, which owns 479,000 Class A common shares and 43,545 Series A preferred shares in West Realm Shires, the unit responsible for FTX Trading's US-based exchange. The complexity of these financial structures adds a layer of intricacy to the situation.
The article notes the potential worthlessness of these investments due to FTX's bankruptcy. It explains the challenges faced by stockholders in bankrupt companies, emphasizing that recovering losses is unlikely as they rank last in line behind creditors with direct claims on a company's assets.
The piece also touches upon the broader spectrum of shareholders affected by FTX's downfall, including Wall Street and Silicon Valley elite such as Tiger Global Management, the Ontario Teachers' Pension Plan, Sequoia Capital, Paul Tudor Jones, Dan Och of Third Point, and entities tied to billionaires like Peter Thiel.
In the context of FTX's recent history, the article mentions the company's impressive $400 million fundraising round last year, valuing the company at $32 billion. This detail underscores the drastic turn of events leading to its current state and the impending trial of founder Sam Bankman-Fried in October.
In conclusion, the intricate web of financial connections and the far-reaching implications of FTX's collapse underscore the complexities and risks inherent in the world of high-stakes investments and financial ventures.
