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A lifelong New England Patriots fan is suing the team's longtime former quarterback, Tom Brady, over his involvement with the cryptocurrency exchange company FTX.
Michael Livieratos, 56, of Connecticut, said he moved $30,000 into FTX after Brady -- among several other notable celebrities -- publicly endorsed the now-bankrupt firm.
“As a New England Patriots fan my entire life, you can imagine the influence that Tom Brady would have,” Livieratos told the Washington Post in an article published on Wednesday (December 14).
Livieratos has hired Florida-based attorney Adam Moskowitz, who was behind the initial lawsuit filed against Brady, his ex-wife, supermodel Gisele Bündchen, Stephen Curry and other notable endorsers last month.
Brady and Bündchen took part in a long-term partnership with both FTX.com and FTX.US, which made Brady a brand ambassador and Bündchen an environmental and social initiatives adviser.
Brady, who launched his own NFT company in April, said he was a "big believer" in cryptocurrencies and confirmed he'd purchased digital coins during the CoinDesk Consensus 2021 forum.
On Monday (December 12), FTX founder Sam Bankman-Fried was arrested in the Bahamas on Monday (December 12) and charged by the Securities and Exchange Commission with defrauding investors and customers in relation to the company Tuesday (December 13) morning, CNN reports.
The SEC accused Bankman-Fried and other FTX executives of orchestrating "a years-long fraud" to divert unlimited funds to his crypoto trading firm Alameda Research.
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” SEC Chair Gary Gensler said in a statement obtained by CNN.
Regulators acknowledged that Tuesday's charge could serve as the first of more possible charges. The SEC added that it had ongoing investigations into "other securities law violations," as well as other entities and individuals linked to FTX and Bankman-Fried.
The Commodity Futures Trading Commission, another regulator, was also charging Bankman-Fried, according to the SEC.
Last month, FTX began the process of filing for Chapter 11 bankruptcy following Bankman-Fried's decision to step down as CEO.
"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," said John J. Ray III, who took over as CEO, according to the company's news release shared on November 11. "The FTX Group has valuable assets that can only be effectively administered in an organized joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency. Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information."
The filing marked a staggering shift for the company, which was previously reported to be valued at $32 billion and deemed as the face of the crypto industry due to its marketing and advertising campaign, as well as long-term partnerships with the aforementioned names included in the lawsuit.
FTX was in discussions with investors for up to $1 billion in funding at a valuation of an estimated $32 billion in September, but has since significantly dropped and is reported to have been taken over by Binance "for pennies on the dollar," CoinDesk.com reported last month.
Brady, who turned 45 in August, announced his retirement, then un-retirement this offseason ahead of his 23rd NFL season, his third with the Tampa Bay Buccaneers.
Brady is the NFL's all-time passing leader for yards and touchdowns, as well as quarterback wins, among numerous other records.
The San Mateo led the Patriots to an NFL record six Super Bowl championships (tied with the Pittsburgh Steelers), before leading Tampa Bay to a victory in Super Bowl LV during his first season with the franchise.