FTX served as the sponsor for Mercedes for approximately 14 months starting in September 2021. The Mercedes Formula 1 team is renowned in the realm of motorsports, boasting numerous sponsors on its cars. However, there was one particular sponsor that encountered significant issues. The individual responsible for this sponsorship has now been sentenced to 25 years in prison.
In September 2021, Mercedes entered into a partnership with FTX, a global cryptocurrency company. This collaboration was intended to span multiple seasons, with FTX’s branding prominently displayed on various elements associated with the team, including the cars, drivers’ attire, trucks, garages, and hospitality areas.
Nevertheless, after a period of fourteen months, Mercedes decided to suspend its partnership with FTX ahead of the 2022 Brazilian Grand Prix. This decision came as FTX declared bankruptcy and its CEO resigned. The CEO has since been found guilty of participating in multiple wire frauds and conspiring to launder money, resulting in what is being regarded as one of the most significant financial frauds in history.
Bankman-Fried, the CEO of FTX, was recently sentenced to 25 years in prison by a Manhattan federal court. Additionally, he has been ordered to forfeit $11 billion worth of assets. The downfall of FTX has attracted considerable attention in the cryptocurrency industry. Mercedes team principal, Toto Wolff, has also commented on the unfortunate state of the once-prominent crypto company.
FTX was previously valued at an impressive $32 billion before its dramatic collapse. Wolff, having witnessed the unpredictability of the cryptocurrency world through FTX’s downfall, now believes that some form of regulation is necessary for the industry. He recognizes the need for cryptocurrency to be brought under regulatory control in order to prevent similar situations from occurring in the future.