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FTX Investor Sues NBA Champions Golden State Warriors Regarding FTX NFT Transaction

FTX Investor Sues NBA Champions Golden State Warriors Regarding FTX NFT Transaction

The NBA champion Golden State Warriors are now included in a slew of class action lawsuits regarding the recent FTX disaster. According to multiple sources, the NBA team is now accused of deceiving FTX clients about the security and dependability of the cryptocurrency exchange.

Stephen Curry, the franchise’s main player, was mentioned in a lawsuit among other celebrities such as Tom Brady and Larry David, alleging that high-profile American athletes engaged in misleading techniques aimed at investors. Someone was affected by the fall of FTX in the United States.

Golden State Partners with FTX

The Golden State Warriors announced a “first-of-its-kind” relationship with FTX in December 2021. As part of the agreement, the NBA team and the defunct crypto platform issued themed NFTs that were made available on the FTX NFT market.

In addition to NFT drops, the relationship featured installation of the FTX brand on basket pole pads and press tables for the Santa Cruz Warriors, the G League affiliate of the Golden State Warriors. In addition, the FTX brand logo was displayed on the Warriors’ virtual basketball floor during NBA 2K League games.

ESPN stated on November 15 that the NBA franchise had already frozen all of its FTX-related advertising assets. This includes all arena advertisements and promotions. In response to a decline in crypto values on the platform, FTX has filed for Chapter 11 bankruptcy protection.

class action lawsuit

Gizmodo reports that the defendant in the complaint against the Golden State Warriors is Canadian and Hong Kong resident Elliot Lam, who informed the press that he brought the suit on behalf of the millions of FTX investors who have been harmed by the Warriors’ affiliation with FTX.

The lawsuit said that Warriors lied when they said that FTX was safe and reliable. During the partnership announcement in December, Brett Harrison, the president of FTX US, said that the FTX US NFT platform could be a great place for international Warriors fans to get their hands on exclusive collectibles from the team.

The above defendant also said that he was hurt by the crash of the FTX market and lost $750,000 because of it. Lam is a foreign investor who has an account at FTX that makes money. In the past few weeks, Sam Bankman-Fried, who started FTX, and other traders lost billions of dollars as the company struggled to deal with an unexpected liquidity crisis.

The Golden State Warriors are not the only NBA team with ties to the FTX platform, which went bankrupt. On South Beach, Miami-Dade County, which owns the Miami Heat’s home arena, signed a huge 19-year deal worth $135 million to name the court after the crypto firm. ESPN says that the American Airlines Arena was the home of the Heat from the time it opened in 1999 until last season.

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