FTX Breakdown: 2022 NBA Champions Golden State Warriors Named In Class Action Lawsuit Over FTX Partnership

The NBA champions Golden State Warriors are now among the individuals and organizations involved in a recent series of class action lawsuits related to the collapse of FTX. Multiple reports revealed that the NBA team is now accused of misleading FTX clients about the security and reliability of the cryptocurrency exchange. Development arrives after Warriors franchise star Stephen Curry was named along with other celebs like Tom Brady and Larry David in a lawsuit alleging that prominent American sports stars engaged in deceptive practices targeting investors who became victims of the FTX crash in the US.

Elliot Lam, a Canadian citizen living in Hong Kong, filed a class action lawsuit Monday in San Francisco federal court for the “thousands, if not millions” of people outside the United States who trade cryptocurrency on FTX, according to a filing. Report By Reuters. FTX founder Sam Bankman-Fried and Caroline Ellison, who heads Bankman Fried’s business Alameda Research, are also named as defendants in the suit.

In the lawsuit, Lam claims FTX was “misrepresenting” a “viable and safe way to invest in cryptocurrency.” Lam is seeking damages for losses of $750,000 (approximately Rs. 6.08 crores) in his FTX account as well as other damages to clients outside the United States.

The 2022 NBA Champions announced that FTX was theirs The official cryptocurrency platform, one of the first cryptocurrency partnerships in sports. At the time, FTX US President Brett Harrison said the partnership with the Warriors provided a safe place for overseas fans to access franchise exclusives, strengthening FTX’s ability “to drive positive change, not just domestically but internationally, with one of the most prestigious sports franchises.” the most respected professional in the world.

Partnership between Warriors and FTX The basketball franchise has seen exclusive NFT collections drop onto the platform. The FTX logo has also been featured on the Warrior’s athletic field during NBA 2K League games, and on the Santa Cruz Warriors’ springboards and press tables.

Golden State has also been involved in a lawsuit (via Bloomberg) in Miami on November 16 by US-based FTX clients seeking damages from FTX supporters, including the Warriors’ All-Star guard Stephen Curry, NFL quarterback Tom Brady, comedian Larry David and tennis star Women’s Naomi Osaka.