The Run-Down: The Bahamas-based, celebrity-backed, cryptocurrency exchange FTX collapsed after failures to maintain corporate control
- FTX billionaire owner Sam Bankman-Fried lost his $32 billion company to bankruptcy
- The company was investigated by the Securities and Exchange Commission and the Justice Department
Why You Should Care:
Another cryptocurrency company bites the dust. As we’ve seen, the crypto industry is facing major challenges as it grows and transforms. Under massive scrutiny from the SEC and DOJ, companies need to cross their T’s and dot their I’s now more than ever.
And this brings in so many aspects of compliance. Having solid policies and procedures is literally critical in protecting your business in the long run. Developing a strong foundation for your business’ practices will be the saving grace to ensure you’re running an ethical company based on integrity.
And of course, this situation is case and point for our own cautionary tale to social media influencers. With the fraudulent actions of the business crashing down, influencers are going down with it. A class action lawsuit is in the works for every celebrity that publicly promoted the business. This serves as a reminder to influencers to ALWAYS clearly disclose when you’re being paid for a promotion, when a product is sent to you, or when you have a material connection with a brand. And remember, all money ain’t good money. Be careful about who you attach to your brand.