According to reports, Riot Games, an American firm best known for creating the popular video game League of Legends, has taken the necessary steps to terminate its partnership with FTX.
The gaming company has suffered "reputational" harm due to the defunct cryptocurrency exchange, which also owes it more than $6 million.
‘The Damage Has Already been Done’
According to a report (1), Riot Games is ready to end its multi-million dollar arrangement with the cryptocurrency exchange FTX, which has gone insolvent. The gaming giant stated that the primary grounds for terminating the relationship are the collapse of its partner and the detention of Sam Bankman-Fried:
"There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX’s bankruptcy filing.," said the attorney for Riot. "The damage to Riot's reputation has already been done. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.”
Riot Games joined forces with FTX during the summer of 2017 and committed to including the platform's branding on all of its promotional materials. For its part, the exchange was required to pay $12.5 million to the gambling company in 2022; however, it has only distributed half of that amount so far.
Riot Games is probably best known for creating League of Legends, also referred to as LoL by its players. As a result of the inclusion of Sam Bankman-Fried as a component of its ecosystem, the online video game currently has close to 150 million active players.
The crypto community was angry (2) at the 30-year-old American because he was allegedly playing League of Legends at the same time his exchange went bankrupt.
Other Businesses Too Following Suite
Shortly after the exchange submitted its petition for protection under the bankruptcy laws, the Mercedes AMG Petronas F1 Team terminated (3) its connection with the exchange. It erased the trading venue's emblem from the vehicles Lewis Hamilton & George Russel were driving.
The illustrious National Basketball Association franchise, the Miami Heat, also severed (4) ties with the exchange. The team has decided to change the name of its home arena, which is now called FTX Arena:
"Miami-Dade County and the Miami Heat are immediately taking action to terminate our business relationships with FTX," the statement read. "we will be working together to find a new naming rights partner for the arena."
The Golden State Warriors, another powerhouse franchise in the NBA, pulled out of all marketing efforts associated with FTX. Edwin Garrison, a citizen of Oklahoma, has filed a lawsuit against Steph Curry, the club's biggest star, and other celebrities, such as Tom Brady, Naomi Osaka, and David Ortiz.
Garrison is also suing the club. He stated that Sam Bankman-Fried had utilized prominent persons to market his company's goods and services, leading gullible investors to suffer huge financial losses.