The Golden state warriors are the last year\’s defending champions. However, things aren\’t going so smoothly for them this year, on the court or off the court. The is currently placed at the eleventh position in the Western Conference with ten defeats and eight wins. Meanwhile, away from the court of play, the team is now facing a lawsuit. The team has been sued after the collapse of the cryptocurrency exchange company FTX.
Golden State Warriors Sued Over Partnership With FTX!
The collapse of the cryptocurrency exchange and marketplace FTX has caused several crypto investors to lose huge amounts of money. Meanwhile, the ramifications of their crash have also hit the NBA. On Monday, an account holder of the bankrupt company FTX dragged the defending NBA champions to the court.
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The plaintiff is identified as a Canadian citizen who resides in Hong Kong named Elliott Lam. According to Elliot, he has lost over $750 000 in the recent FTX crash. He has sued the Golden State Warriors for the alleged partnership with the now-bankrupt fintech company.
Sam Bankman-Fried, the creator of FTX, and Caroline Ellison, the head of Bankman-trading Fried\’s company Alameda Research, are two further defendants. The group had designated FTX as its official cryptocurrency platform back in December. It was referred to as first-of-its-kind cryptocurrency cooperation in professional sports. Lam charged the defendants with false claims about FTX\’s viability and safety to lure customers into investing there.
Customers with FTX yield-bearing accounts who reside outside of the United States are being sued for damages under California consumer laws. Lam said that his account lost $750,000. According to a Warriors spokesman, the franchise won\’t comment on ongoing legal disputes. Requests for more comment from Lam\’s attorneys were not immediately fulfilled. Lam\’s lawsuit was filed a few days after the Warriors declared they would stop using any FTX-related marketing materials.
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It is noteworthy that this is not the only case in which the Warriors are a defendant. Previously in Miami, some US citizen who was customers of FTX have also filed a case against several celebrities over the damages they faced due to the crash of the crypto company. The list of celebrities included in the lawsuit includes big names like Warriors\’ Steph Curry, NFL star Tom Brady, Naomi Osaka, and Seinfield creator Larry David.
Meanwhile, The warriors have already ceased all the promotional campaigns related to th FTX, as per last week\’s reports. On the other hand, Miami Heat has also dropped FTX\’s name as the arena sponsor. The Heat are currently looking for a new sponsorship partner to replace FTX\’s tainted name.
