December 3, 2022

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The NBA champ sued to promote bankrupt FTX

The shocks continue after the collapse of the cryptocurrency exchange FTX. Elliott Lam, a now-defunct FTX client, has filed a lawsuit against the NBA champions, the Golden State Warriors, accusing them of fraudulently promoting the cryptocurrency exchange.

Elliott Lam – a Canadian citizen and resident of Hong Kong – filed a lawsuit in federal court in San Francisco on behalf of “thousands, if not millions” (as he puts it) of people outside the US who traded on the FTX platform.

As claimed, last December the Warriors brought FTX as their official cryptocurrency platform, in what they described as a first-of-its-kind partnership in professional esports. Lam accused them of falsely saying that FTX was a “viable and safe way to invest” in order to trick interested parties into investing their money there.

The lawsuit seeks damages under California consumer laws for non-US customers. According to Lam, he lost $750,000 from this case.

A Warriors spokesperson said the NBA team is not discussing pending legal issues. Last week, the Warriors stopped promotions related to FTX.

It is noteworthy that the Warriors are also defendants in a lawsuit filed on November 16 in Miami by FTX clients in the United States seeking compensation from celebrities such as team star Stephen Curry and tennis player Naomi Osaka.

Another NBA team, the Miami Heat, said on November 11 that it was dropping the FTX title from its home court and would look for a new sponsor.

It is worth noting that since November 6 and in the wake of the fall of FTX, $280 billion has been “unloaded” from the cryptocurrency market.

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