NBA’s Team Golden State Warriors lawsuit for Promoting FTX As Safe
The FTX crash affects more than just the cryptocurrency sector. Several sports teams are also experiencing difficulties due to their relationships with the exchange.
A user of FTX is suing NBA franchise Golden State Warriors, accusing them of falsely marketing the FTX exchange after losing $750,000 due to the site’s collapse.
Elliot Lam filed a class action lawsuit against Sam Bankman-Fried (SBF), former CEO of FTX, Caroline Ellison, CEO of SBF’s trading business Alameda Research, and the Golden State Warriors in San Francisco, demanding $5 million in damages, according to Reuters, which has access to the case.
Elliot Lam: Warriors Promoted “Fraud” FTX
According to Elliot, “thousands, if not millions of consumers internationally”, lost their cash due to the massive “fraud” committed by FTX, which continues to wreak havoc on the cryptocurrency ecosystem.
After negotiating a $10 million contract with FTX in late December of 2017, the NBA club advertised the cryptocurrency platform as a “viable and secure method to invest in crypto,” according to Elliot.
Brett Harrison, president of FTX USA, stated at the time that the partnership with the Warriors provided a secure venue for overseas fans to access the franchise’s exclusive collectables, enhancing FTX’s ability “to create a positive change not only domestically but internationally with one of the most prestigious professional sports franchises in the world.”
In Miami, More Celebrities Face A Similar Lawsuit
As reported, the Golden State Warriors halted all FTX-related marketing after news of the platform’s collapse. Many consumers who trusted the team’s reputation lost millions of dollars on the exchange.
Due to the enormous number of followers of the current NBA champion, lawsuits continue to be filed. In addition to Lam’s complaint, the squad is facing a class action lawsuit in Miami from FTX US consumers, who are suing the team and Tom Brady and Naomi Osaka, among others.
Stephen Curry, the top player for the Warriors, is another superstar subject to public scrutiny. In Miami, he is being sued for advertising FTX.
For his part, Kevin O’Leary, better known as “Mr Wonderful” on the T.V. show “Shark Tank,” told Business Insider that “what happened is horrible” and that “those responsible should be held accountable.” O’Leary concluded his statement by urging regulators to do their duties.
John J. Ray III, the new CEO of FTX, recently stated that the exchange suffered a “complete failure of corporate controls” with mind-boggling revelations such as the absence of files to archive conversations and meetings, the approval of budgets and expenses with emojis, the lack of proper H.R. control, and the absence of daily reconciliation of positions on the blockchain.
