NBA’s Golden State Warriors Face Lawsuit For Promotion Of FTX
- A lawsuit has been filed against the Golden State Warriors for the promotion of the former multi-billion dollar firm, FTX, as it promoted the exchange’s services, leading to huge losses of investors.
- Elliot Lam, the plantiff, was the one behind the lawsuit against the crypto exchange and the NBA team, and stated that he lost over $750,000 due to FTX’s bankruptcy and is seeking $5M in compensation.
- FTX partnered with Golden State Warriors last December and it was dubbed as a first-of-its-kind cryptocurrency partnership in the world of NBA as well as professional sports.
The collapse of the now disgraced crypto exchange, FTX, which was once a multi-billion dollar firm, has found its way to a prominent team in the National Basketball Association (NBA), the Golden State Warriors.
A lawsuit has been filed against the team for the promotion of the former multi-billion dollar firm for the alleged promotion of its services which led to many investors losing their money.
As per Reuters, the Golden State Warriors was sued by an FTX customer on Monday who said that the National Basketball Association champions had fraudulently promoted the exchange after they lost $750,000 due to the platform’s collapse. Elliot Lam, the plantiff, was the one behind the lawsuit against the crypto exchange and its CEO Sam Bankman-Fried, also known as SBF in the crypto space.
In the lawsuit, Caroline Ellison, CEO of SBF’s trading firm Alameda Research, was also mentioned along with Golden State Warriors and SBF. The plantiff, Elliot Lam, is seeking over $5 million in damages and has filed his proposed class-action lawsuit in San Francisco federal court on behalf of “thousands, if not millions” of people outside the United States who have used the services provided by FTX.
FTX partnered with Golden State Warriors last December and it was dubbed as a first-of-its-kind cryptocurrency partnership in the world of NBA as well as professional sports. Interestingly, when Reuters reached out to the NBA team, a spokesperson said that the firm did not discuss legal matters. Additionally, Lam claims that FTX was a “viable and safe way to invest in crypto.”
At the time of announcement of the partnership, it was confirmed that the two entities will collaborate on several non-fungible tokens which would be released throughout 2022. The Golden State Warriors and the crypto firm also said that they will “gift 3 Bitcoin—one per non-profit— to three Bay Area organizations that address educational equity.”
Golden State Warrior Not The Only One In Trouble
Promotion of FTX has got into trouble some of the most notable celebrities around the globe and as per an earlier report from BitcoinWisdom, a class action suit worth $11 billion was filed in Florida against Bankman-Fried and celebrities such as Naomi Osaka, Shaquille O’Neal, Larry David, Gisele Bundchen, Tom Brady, and others.
Basketballer Stephen Curry publicly stated that FTX was the platform he used as it provided “everything I need to buy, sell, and trade crypto safely.” Brady and his estranged supermodel wife, Gisele Bundchen were singled out in the lawsuit for a commercial where they urged fans to use the FTX exchange.