Lam’s lawsuit says the defendants falsely represented FTX as a “viable and safe way to invest in crypto.”
It also alleges that the company sold unregistered securities through yield-bearing accounts, which gave interest on cryptocurrencies.
The lawsuit alleges that FTX used “A-list celebrities and mass branding campaigns” to “drive unwitting investors and consumers into a Ponzi-like scheme.”
Furthermore, as a successful NBA team, it has “unprecedented reach internationally” and exposed FTX’s marketing to “millions of consumers.”
The Warriors named FTX its “official cryptocurrency platform and NFT marketplace” last December in a first-of-its-kind partnership. It also saw FTX’s logo printed on the Warriors’ home court. CNBC reported that this deal was worth $10 million before the Warriors put it on pause last week.
In the announcement, FTX’s US president, Brett Harrison, said that its NFT platform “will provide a leading, safe and secure venue for the Warriors international fan base to access exclusive collectibles from the franchise.”