Golden State Warriors Face A Class-Action Lawsuit From Non-US Customers For Promoting FTX

An FTX FTT/USD customer who claimed he lost $750,000 after the exchange went bankrupt has filed a lawsuit against the NBA's Golden State Warriors based on the team promoting the allegedly fraudulent crypto exchange, according to a Reuters report from Monday.

Elliott Lam filed the class-action lawsuit in San Francisco, naming Sam Bankman-Fried, Caroline Ellison and the Golden State Warriors in the suit.

Lam accused the Golden State Warriors of misrepresenting FTX as a "viable and safe way to invest in crypto," a characterization he claimed was deceptive.

See Also: Sam Bankman-Fried, You Are Invited to Speak At Benzinga's Future of Crypto on Dec. 7

The lawsuit seeks $5 million in damages for non-U.S. customers. In the suit, Lam said, “thousands, if not millions, of consumers internationally” had been harmed by the collapse of FTX and the defendants helped perpetuate “fraud and deceit at a scale rarely seen before.

The Warriors were also being sued in Miami by U.S.-based FTX customers. Notable people named in that case included Bankman-Fried as well as NFL quarterback Tom Brady and comedian Larry David, with the suit stating they engaged in deceptive practices to promote FTX exchange.

FTX filed for bankruptcy in mid-November, as it explained on Twitter. In the updated filing, there was the claim that: “In fact, there could be more than one million creditors in these Chapter 11 Cases.”

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Photo: Pit Karges from Pixabay