Now, lead plaintiff Lam, described as a Canadian citizen and Hong Kong resident, seeks damages for FTX customers outside the United States. Lam argues that the defendants falsely represented FTX as a safe venue for cryptocurrency investments.
On Monday, Elliott Lam filed a class action complaint against Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX — which filed for bankruptcy on November 11.
Additional defendants include Caroline Ellison, the CEO of Alameda Research — which has also filed for bankruptcy — and the Golden State Warriors.
Alameda Research was a trading firm founded by Bankman-Fried, and the overly close relationship the firm had with FTX played a central role in the collapse of the cryptocurrency exchange.
While the Warriors are not directly implicated in the questionable business practices that led to the collapse of Bankman-Fried’s companies, the team partnered with and heavily promoted FTX.
Last December, the Warriors named FTX as their Official Cryptocurrency Platform and NFT Marketplace. Then-FTX president Brett Harrison promised that the platform would be a “safe and secure venue for the Warriors international fanbase to access collectables from the franchise.”
Now, lead plaintiff Lam, described as a Canadian citizen and Hong Kong resident, seeks damages for FTX customers outside the United States. Lam argues that the defendants falsely represented FTX as a safe venue for cryptocurrency investments.
