Warriors Sued over Promotion of FTX After Cryptocurrency Exchange’s Collapse | News, Scores, Highlights, Stats, and Rumors

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The Golden State Warriors were listed as defendants in a lawsuit stemming from the collapse of cryptocurrency exchange FTX.

The Warriors announced a deal with FTX in December to name the company their official cryptocurrency platform and NFT marketplace.

According to Reuters, Elliott Lam is alleging in his suit the NBA franchise helped to portray FTX as a “viable and safe way to invest in crypto.”

FTX filed for bankruptcy on Nov. 11, citing assets worth $10 billion to $50 billion and liabilities in the same range. That came after what amounted to a bank run, with so many customers attempting to take their money out of their accounts that FTX paused withdrawals altogether.

Reuters’ Angus Berwick reported that at least $1 billion worth of customer funds “vanished,” raising concerns that those who invested their money with FTX will never get it back.

To help raise brand awareness and widen its footprint, FTX aggressively pursued sponsorships with sports leagues and franchises.

It made a major splash in June 2021 when it became MLB’s official crypto exchange, with MLB umpires all wearing its logo on their uniforms. Earlier that month, FTX bought the naming rights for the Miami Heat’s arena, which was christened FTX Arena.

Now, the sports world is reaping the consequences of its embrace of the crypto platform.

This is the second lawsuit in which the Warriors are defendants. They and others, including their star point guard Stephen Curry, Tampa Bay Buccaneers quarterback Tom Brady, tennis star Naomi Osaka and NBA legend Shaquille O’Neal are being sued over allegations of deception in FTX advertising.

Per CNN, a spokesperson for the team declined to comment on the newest litigation since it’s a pending legal matter.

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