Riot Games Faces Lawsuit Over FTX Deal

Riot Games’ relationship with FTX underwent a sudden and drastic change. Initially skeptical of FTX’s deal with TSM, Riot later formed an alliance to sponsor the League of Legends Championship Series (LCS).

However, this sponsorship has now landed Riot in legal trouble. According to The Esports Advocate, on March 7th, Riot received a lawsuit alleging its involvement in the collapse of the FTX platform and fraudulent activities.

The FTX-Riot Agreement

Riot agreed to a seven-year sponsorship deal with FTX worth $96 million within the LCS. FTX leveraged the fact that the platform’s founder, Sam Bankman-Fried, was an avid League of Legends player. Within the North American competition, the cryptocurrency company primarily branded the Most Improved Player Award and in-game gold scores.

The Lawsuit

Multiple individuals, including Edwin Garrison, Brandon Orr, Leandro Cabo, and others, filed a lawsuit against Riot over the FTX agreement. The plaintiffs allege that Riot contributed to FTX’s collapse and promoted the group’s fraud, violating fraud and unfair competition laws.

Objectives of the Plaintiffs

The plaintiffs seek class-action status for their lawsuit to resolve all members’ claims in a single lawsuit. The lawsuit aims to recover economic damages, restitution of income, legal, punitive, and multiple damages, in addition to trial costs.

Similar Lawsuits

Riot is not alone in facing legal action; various individuals who actively sponsored FTX have also been sued for fraud and contributing to the platform’s collapse. However, like most organizations involved, Riot did not receive the full amount agreed upon in the deal with the cryptocurrency company.

Conclusion