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.