FTX investor sues Golden State Warriors for 'falsely promoting' crypto exchange
![Golden State Warriors logo.](https://cdn.mos.cms.futurecdn.net/Bq2NL7K6n3YECTc2mPiA55-415-80.jpg)
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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.
-
Today's political cartoons - September 7, 2024
Cartoons Saturday's cartoons - football widows, meddling kids, and more
By The Week US Published
-
Smoking ban: the return of the nanny state?
Talking Point Starmer's plan to revive Sunak-era war on tobacco has struck an unsettling chord even with some non-smokers
By The Week UK Published
-
Crossword: September 7, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published