An FTX Customer Who Lost $750,000 Files a Lawsuit against Golden State Warriors

Golden State Warriors FTX
Golden State Warriors FTX

An FTX customer who says he shed $750,000 after the crypto behemoth collapsed has filed a lawsuit against the NBA’s Golden State Warriors, accusing the team of fraudulently promoting the firm.

Elliott Lam, a Canadian who lives in Hong Kong, filed the proposed class-action lawsuit in San Francisco against Sam Bankman-Fried, Caroline Ellison, and the reigning NBA champions.

The lawsuit seeks $5 million in damages for non-US customers, adding that “thousands, if not millions, of consumers internationally” have been impacted by the downfall of FTX, which the suit claims perpetrated “fraud and deceit at a scale rarely seen.

Reuters first reported the lawsuit Monday. The Warriors are also defending a lawsuit in Miami filed by American FTX customers.

FTX filed for bankruptcy on November 11. The crypto exchange change was worth $32 billion before it plummeted to zero. Its court filings show that the firm has up to one million creditors, and a lack of oversight to the extent that it didn’t have an accounting department.