The Golden State Warriors named FTX their “official cryptocurrency platform” last December.
The former FTX client is now suing the company in California after the collapse of FTX.
Elliott Lam accuses Warriors of falsely promoting FTX as a “viable and safe way to invest in cryptocurrency.”
An FTX client who said he lost $750,000 after the cryptocurrency exchange went bankrupt has filed a lawsuit against the NBA’s Golden State Warriors accusing the team of fraudulently promoting the company.
Elliott Lam, a Canadian who lives in Hong Kong, filed the proposed class action lawsuit in San Francisco against Sam Bankman Fried, Caroline Ellison, and NBA champions.
The lawsuit, seen by Insider, seeks $5 million in damages for non-US customers, adding that “thousands, if not millions, of consumers globally” were affected by the FTX meltdown, which the lawsuit alleges committed “fraud and deception on a scale rarely seen before.” be seen.
Warriors are too Defending a lawsuit in Miamiprovided by US FTX customers.
FTX filed for bankruptcy on November 11, after it was previously valued at $32 billion. Court filings show that the company has up to 1 million creditors, And the lack of oversight to the extent that She did not have an accounting department.
The lawsuit, filed by Lam, says the defendants presented FTX as a safe and viable way to invest in cryptocurrency.
It also claims that the company sold unregistered securities through yield-bearing accounts, which gave interest on cryptocurrencies.
The lawsuit alleges that FTX used “celebrity-list and mass branding campaigns” to “unwittingly drive investors and consumers into a Ponzi-like scheme.”
The Warriors were instrumental in this, he adds, because as a successful team in the NBA, they had “unprecedented reach internationally” and offered FTX marketing “to millions of consumers”.
The suit accuses the Warriors of violating California’s false advertising and unfair competition laws.
When contacted by Insider, Warriors declined to comment, saying, “As per organizational policy, we do not comment on ongoing legal matters.”
The Warriors named FTX its “official cryptocurrency platform and NFT marketplace” last December, in a first-of-its-kind partnership that also saw the FTX logo printed on the Warriors’ home court. CNBC reported That deal was worth $10 million, before the Warriors called it off last week.
In the AdvertisingFTX US President Brett Harrison said its NFT platform “will provide a leading, safe and secure place for the Warriors’ international fan base to access exclusive collectibles from the franchise.”
Team star Stephen Curry – In addition to other celebrities — are also under fire for endorsing the company, and joining the Warriors as defendants in the lawsuit in Miami.
Read the original article at Business interested