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HomeStockNBA champion Golden State Warriors are sued over FTX collapse By Reuters

NBA champion Golden State Warriors are sued over FTX collapse By Reuters

© Reuters. FILE PHOTO: Representations of cryptocurrencies are seen in entrance of displayed FTX emblem on this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -The Golden State Warriors have been sued on Monday by an FTX buyer who accused the reigning Nationwide Basketball Affiliation champions of fraudulently selling the now-bankrupt cryptocurrency trade.

Elliott Lam, a Canadian citizen and Hong Kong resident, filed his proposed class-action lawsuit in San Francisco federal court docket on behalf of “hundreds, if not tens of millions” of individuals exterior america who traded on FTX’s platform.

Different defendants embody Sam Bankman-Fried, who based FTX, and Caroline Ellison, who led Bankman-Fried’s buying and selling agency Alameda Analysis.

The Warriors final December had named FTX its official cryptocurrency platform, in what it referred to as a first-of-its-kind cryptocurrency partnership in skilled sports activities.

Lam accused the defendants of falsely representing that FTX was a “viable and secure approach to spend money on crypto,” in an effort to deceive folks into investing there.

The lawsuit seeks damages beneath California shopper legal guidelines for patrons exterior america with FTX yield-bearing accounts. Lam stated he misplaced $750,000 in his account.

A Warriors spokeswoman stated the crew doesn’t focus on pending authorized issues. Lam’s legal professionals didn’t instantly reply to requests for added remark.

The Warriors are additionally a defendant in a Nov. 16 lawsuit in Miami by U.S.-based FTX clients looking for damages from celeb endorsers like Warriors guard Stephen Curry, quarterback Tom Brady, comic Larry David and tennis participant Naomi Osaka.

Final week, the Warriors paused promotions associated to FTX, in keeping with printed reviews.

One other NBA crew, the Miami Warmth, on Nov. 11 stated it could drop the FTX title from its enviornment and search a brand new naming sponsor.

FTX filed for Chapter 11 safety on the identical day. The Warmth isn’t a defendant within the Miami lawsuit.



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