Trouble on the Horizon
FTX investor sues Golden State Warriors for 'falsely promoting' crypto exchange
The Golden State Warriors are being sued by a former customer of FTX, who accused the NBA franchise of fraudulently promoting the now-collapsed crypto exchange, Reuters reported.
Elliott Lam, a Canadian resident of Hong Kong, filed a lawsuit against the team in a San Fransisco federal court on Monday. According to a copy of the lawsuit obtained by Insider, Lam is reportedly seeking $5 million in damages as part of a class-action settlement for "thousands, if not millions, of consumers internationally" that he claimed had been scammed by FTX.
A number of other parties were also reportedly named in the lawsuit, including the founder of FTX, Sam Bankman-Fried, and Caroline Ellison, the head of Bankman-Fried's trading firm.
In the aftermath of FTX's collapse, significant scrutiny has been placed on endorsements of the exchange from celebrities and brands alike. This includes the Warriors, who partnered with FTX this past December to make them the team's official cryptocurrency platform in a deal reported by CNBC to be worth $10 million.
Lam, who claims to have lost $750,000 through FTX, accused the defendants, including the Warriors, of falsely promoting FTX as a "viable and safe way to invest in crypto."
While Lam's lawsuit focuses on international clients, the Warriors have also been named in a separate Miami-based lawsuit on behalf of American FTX investors. This filing is seeking personal damages from celebrity athletes, including Warriors star point guard Steph Curry.
A spokesperson for the Warriors told Reuters they do not comment on pending litigation.