Tom Brady among celebrities named as defendants in crypto lawsuit against FTX

Yahoo Sports Charles Robinson, Jori Epstein and Charles McDonald discuss Tom Brady’s connection to the class action lawsuit filed against FTX founder Sam Bankman-Fried and a number of other celebrities. How big will this success off the field be for Brady? Listen to the full conversation on the You Pod to Win the Game podcast. Subscribe to Apple Podcasts, Spotify, Stitcher or wherever you listen.

Video transcription

[AUDIO LOGO]

CHARLES ROBINSON: Major lawsuit filed over implosion of cryptocurrency trading platform FTX. I think it was the third largest trading platform on the planet. Sam Bankman-Fried is now in the crosshairs for what many are calling a Ponzi scheme.

But the reason we’re talking about it here is because Tom Brady was friends with Sam Bankman-Fried. She posted videos on her social media with him. He was at a cryptocurrency conference in the Bahamas with this guy. He had Bitcoin laser eyes on his social media profiles, which now, interestingly enough, he’s now taken off because he doesn’t want to be associated with this mess.

Look, this is going to be a significant flaw off the pitch for him. No one knows how much stake he had in the FTX platform. But the reality is, I remember it was the Super Bowl commercial, Tom Brady likes cryptocurrencies or you… or I don’t remember the exact language. I had written about it.

And when I looked at Google searches for FTX, they skyrocketed the week after the commercial came out. Then, several months later, another commercial comes out with Tom Brady as the centerpiece, again a huge spike. It’s just that this is an individual who… and Odell Beckham Jr. has been involved in cryptocurrencies. Aaron Rodgers has been involved in cryptocurrencies, Trevor Lawrence. You had a multi– Russell Okung. There were all these athletes saying, I want to get paid in Bitcoins and all this stuff.

And they were seen as geniuses right now. Yet now everyone, all you see is the multitude of, how much have they lost? Oh, Brady, Brady and Gisele had $650 million tied up in FTX, which isn’t true, by the way. But it’s one of these things that I think looking back, this is impacting the entire cryptocurrency market, which means it’s impacting a lot of people around the world, a lot of Americans. A lot of people are losing a lot of money to something that appears to be unregulated and seems pretty sneaky.

And here’s the interesting thing about this one with Brady. Now that this lawsuit has been filed, the question is going to be raised at some point by all the people who have lost money in this, the brand ambassadors, what did they know, when did they know about it, and did they get any equity before the announcement that the FTX platform was filing for bankruptcy? And I’m going to tell you right now, if anybody’s come up with any money named Tom Brady or Steph Curry or any of these other individuals who’ve driven this, there’s going to be hell to pay. There’s going to be a lot of really pissed off people because it looks like, hey, there’s basically some inside information. And they got their parachute before everyone else got robbed.

Jori, do you think this will spell the end of… I hope so. This spells the end of athletes who say, yes, I’ll go ahead and throw… my company manager came up with this arrangement for me. I don’t understand what the hell it is. But I’m going to go ahead and launch it anyway.

JORI EPSTEIN: Yes, I think I would be willing to at least bet all the money you have put into cryptocurrencies that this is not the end of the athletes who do it.

CHARLES ROBINSON: Oh really? Okay.

JORI EPSTEIN: I just think the way we see, I mean the number of different things you see athletes promoting, I find it hard to believe that players, especially players who are able to leverage their NFL brand and maybe aren’t getting those big contracts , will not continue to make these risky decisions, not all players. But, I mean, what, you’ve got 1,300 guys in the league, whatever that is. I think some will. And you, CMAC?

CHARLES MCDONALD: I definitely don’t think this is the end of things like this. As long as there’s money to be made here maybe that’s just cynical of me but I can’t imagine what the next scam is if you can get athletes and sports enthusiasts involved and also the mental rush of gambling somehow I feel that stuff like that will always be around.

I mean, I remember when I was back in college and people were selling Verve drinks, like, do you want residual income, bro? Well, how about buying this and then selling it to those people? And then you can give me some of it and you’ll get some of it from those people.

And it’s like, come on. Ponzi schemes will last forever. They are as American as apple pie. And I think athletes will still be involved with them as well.

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