In the recent class action lawsuits, the Golden State Warriors, the 2022 NBA champions, have been accused of misleading FTX customers about the dependability and security of the faltering cryptocurrency network.
The Golden State Warriors were named in a complaint on Monday that claimed the insolvent cryptocurrency exchange FTX used the defending NBA champions to falsely advertise its platform. This comes as more sports organizations distance themselves in the wake of FTX’s recent collapse.
FTX Collapse And Law-Suit Overview
Golden State Warriors, the defending NBA champions, are currently one of the people and entities named in a new wave of class action lawsuits on the FTX disaster. According to different sources, the NBA squad is currently charged with deceiving FTX consumers regarding the security and dependability of the cryptocurrency exchange.
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The news broke after Stephen Curry, a star player for the Warriors franchise, was named in a lawsuit along with actors Larry David and Tom Brady, who was accused of engaging in dishonest business tactics against investors who were hurt by the collapse of FTX in the US.
Elliott Lam, a Canadian citizen living in Hong Kong, filed a class-action lawsuit on Monday in federal court in San Francisco on behalf of “thousands, if not millions,” of people who trade cryptocurrencies on FTX outside of the US, according to a Reuters story.
Additionally named as defendants in the lawsuit are Sam Bankman-Fried, the man behind FTX, and Caroline Ellison, the executive director of Bankman-trading Fried’s business, Alameda Research.
By “falsely representing” a “viable and safe opportunity to invest in cryptocurrencies,” according to Lam’s lawsuit, FTX violated his rights. For his account losses of $750,000 (about Rs. 6.08 crore) at FTX, as well as other harms to clients outside the US, Lam is asking reimbursement.
NBA Champions Cryptocurrency FTX
When the 2022 NBA Champions designated FTX as its official cryptocurrency platform, it became one of the first bitcoin partnerships in sports. At the time, Brett Harrison, president of FTX US, said that the Warriors’ partnership increased FTX’s capacity “to drive positive change, not just domestically but internationally, with one of the most prestigious sports franchises” by providing international fans with a secure location to access franchise exclusives.
Warriors and FTX collaborate Exclusive NFT collections have been released on the platform for the basketball franchise. The FTX logo has also appeared on the Santa Cruz Warriors’ press tables, springboards, and athletic fields during NBA 2K League games.
On November 16, US-based FTX clients filed a lawsuit in Miami seeking compensation from FTX sponsors such as Stephen Curry of the Warriors, Tom Brady of the New England Patriots, Larry David of Comedy Central, and Naomi Osaka of the tennis sensation.
The NBA franchise has since suspended all FTX-related promotions, while the Miami Heat, a different US basketball team, has announced it will remove the FTX brand from its stadium. The GSW case does not involve the Heat of Florida. According to a Warriors spokesman, the team will not comment on open legal issues.
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