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 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.
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.
Naomi Osaka took an equity stake with the popular crypto exchange in March of this year
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.’
Steph Curry inked a partnership with FTX in September 2021, though details were undisclosed
Osaka and Curry are not the only people in the sports world who are affected by FTX’s crash.
Tom Brady and ex-wife Gisele 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.