After FTX founder Sam Bankman-Fried stepped down as CEO, the cryptocurrency company has filed for chapter 11 bankruptcy. They released a press release stating John J. Ray III will take over as CEO following Bankman-Fried’s resignation. Bankman-Fried “will remain to assist in an orderly transition,” according to the press release.
The cryptocurrency giant was valued at 32 billion dollars with partnerships with the who’s who of the sports and entertainment world. Tampa Bay Buccaneers quarterback Tom Brady and his ex-wife, supermodel Gisele Bündchen, Stephen Curry, Naomi Osaka, Trevor Lawrence, Larry David, Shohei Ohtani and Shaquille O’Neal to name a few. They may also face legal action. A class-action lawsuit filed against FTX states that the former CEO violated Florida law by misleading customers. The lawsuit claims these individuals, among others, “either controlled, promoted, assisted in, and actively participated” in the alleged scheme where they “aggressively marketed” FTX.
