Nov 21 (Reuters) – The Golden State Warriors had been sued on Monday by an FTX buyer who accused the reigning Nationwide Basketball Affiliation champions of fraudulently selling the now-bankrupt cryptocurrency alternate.
Elliott Lam, a Canadian citizen and Hong Kong resident, filed his proposed class-action lawsuit in San Francisco federal court docket on behalf of “1000’s, if not tens of millions” of individuals exterior the US who traded on FTX’s platform.
Different defendants embrace 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 known 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 protected method to spend money on crypto,” in an effort to deceive individuals into investing there.
The lawsuit seeks damages beneath California shopper legal guidelines for patrons exterior the US with FTX yield-bearing accounts. Lam stated he misplaced $750,000 in his account.
A Warriors spokeswoman stated the crew doesn’t talk about pending authorized issues. Lam’s legal professionals didn’t instantly reply to requests for extra remark.
The Warriors are additionally a defendant in a Nov. 16 lawsuit in Miami by U.S.-based FTX prospects searching for damages from movie star 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 response to revealed experiences.
One other NBA crew, the Miami Warmth, on Nov. 11 stated it will 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 just isn’t a defendant within the Miami lawsuit.
Reporting by Jonathan Stempel in New York; Extra reporting by Amy Tennery; Modifying by Tomasz Janowski and Invoice Berkrot
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