Elliott Lam, a Canadian citizen who lives in Hong Kong, filed a class-action lawsuit on Monday in San Francisco federal court for “thousands, if not millions” of people outside the US that trade cryptocurrency on FTX, according to a report by Reuters. FTX founder Sam Bankman-Fried and Caroline Ellison, who headed Bankman-Fried’s Alameda Research trading firm, are also named as defendants in the lawsuit.
In the lawsuit, Lam claims that FTX was “falsely representing” a “viable and safe way to invest in crypto.” Lam is seeking damages for the $750,000 (roughly Rs. 6.08 crore) worth of losses in his FTX account as well as other damages to customers outside the US.
The 2022 NBA champions announced that FTX was their official cryptocurrency platform, one of the first crypto partnerships in sports. At the time, Brett Harrison, president of FTX US, said the partnership with the Warriors provided a secure venue for fans overseas to access the franchise’s exclusive collectibles, enhancing FTX’s ability “to create a positive change, not only domestically but internationally, with one of the most prestigious professional sports franchises in the world.”
The partnership between the Warriors and FTX saw the basketball franchise drop exclusive NFT collections on the platform. FTX also had their logo virtually placed on the Warrior’s esports team’s court during NBA 2K League games, and on pole pads and press tables for the Santa Cruz Warriors.
Golden State was also involved in a lawsuit (via Bloomberg) in Miami on November 16 by US-based FTX customers who seek damages from FTX endorsers, including Warriors’ All-Star point guard Stephen Curry, NFL quarterback Tom Brady, comedian Larry David and women’s tennis star Naomi Osaka.