Why were Golden State Warriors sued by an FTX customer back in November 2022? Uncovering details behind the team's association with crypto exchange
In November 2022, the Golden State Warriors were accused of fraudulently promoting the bankrupt cryptocurrency exchange platform, FTX. An FTX customer, Elliot Lam, sued the Warriors organization for tricking thousands of people into trading cryptos on a dying platform. Lam filed a lawsuit against the organization in San Francisco federal court.
According to sources, back in December 2021, the Golden State Warriors partnered up with FTX and named them their official cryptocurrency platform. As per Elliot Lam, the Warriors advertised FTX to be a safe platform for traders to invest in crypto. Lam then accused the organization of making false claims and stated that the NBA team ended up deceiving many investors.
While filing a lawsuit, Elliot clarified that he lost $750,000 when he started investing his money in FTX. This resulted in the Warriors pausing their advertisement for the cryptocurrency platform until everything gets sorted out. As of the moment, there isn't any news on whether or not Lam and the Warriors have settled things.
Is the ongoing FTX issue getting in the way of the Golden State Warriors' season?
With approximately 16 games remaining in their season, the Golden State Warriors are currently sitting as the 6th seed in the West and will look to maintain their spot until the end of the regular season. However, the team hasn't exactly been acting like defending champions all year long. Could it be due to the behind-the-scenes issue between the Warriors and FTX?
Honestly, whatever happens to the executives in the organization behind the scenes has nothing to do with the players. Unfortunately, Golden State just ran into some bad luck this season, which is why they haven't been at their best this year.
The team lost Steph Curry and Andrew Wigging due to injuries. Then a couple of their players Draymond Green and Jordan Poole got into an altercation. Plus, there's also the issue of how the young core of the Warriors hasn't been living up to their status as defending champions. Given these factors, it's no wonder the team has been struggling to stay on top, let alone stay in the playoff picture.
Luckily for the Golden State Warriors, being the 6th seed means they have a secured slot in the 2023 NBA Playoffs. But as of the time of this publishing, the Warriors are just one game away from falling back into the Play-In Tournament picture.
If they manage to win the majority of their remaining games, fans might witness a heated rivalry matchup between the Warriors and the Memphis Grizzlies in the first round of the playoffs.