Second FTX Lawsuit Targets SBF, Caroline, Golden State Warriors

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  • A second class action lawsuit against FTX has been filed, with some familiar defendants
  • The case has been filed by Eric Lam on behalf of all non-U.S. FTX users
  • This filing has strong echoes of another class action lawsuit filed last week in Miami

A second class action lawsuit surrounding the collapse of FTX has landed in federal court, this time with the Golden State Warriors basketball team among the list of defendants. The reigning National Basketball Association champions have been accused of fraudulently promoting the now-bankrupt cryptocurrency exchange, with Canadian citizen and Hong Kong resident Elliott Lam filing the suit on behalf of  “thousands, if not millions” of non-US residents.

SBF, Caroline and Golden State Warriors Named Again

Lam’s filing is the second class action lawsuit filed against FTX and some of those associated with it, with some similar names listed as defendants – FTX founder Sam Bankman-Fried, Alameda Research CEO Caroline Ellison, and the Golden State Warriors, all of whom Lam says promoted FTX as a “viable and safe way to invest in crypto” and “reasonably should have known that all these claims … were untrue or misleading.”

Lam claims he personally has $750,000 stuck on his FTX account and is proposing the class-action suit as a means for anyone with a FTX yield-bearing account located outside of the U.S. to try and claim some kind of compensation.

Warriors Deal Lasted Less Than a Year

The Warriors announced a partnership with FTX in December 2021, describing it as the first between a cryptocurrency platform and a professional sports franchise—with FTX debuting as the franchise’s official cryptocurrency platform

This case comes just a week after the first FTX lawsuit was filed in Miami, with celebrity endorsers such as Tom Brady, Gisele Bündchen, Steph Curry and Larry David also among those involved in promoting FTX.