Riot Games is attempting to back out of a sponsorship deal with now-defunct crypto exchange FTX that was signed last year. The deal included FTX paying Riot Games $12.5 million by 2022, however, only $6.25 million has been paid due to FTX’s bankruptcy and the arrest of its former leader, Sam Bankman-Fried, in The Bahamas.
According to crypto researcher Molly White, FTX was supposed to pay Riot Games an increasing annual sum of millions up until 2028. As a result, Riot has now filed a motion to have the deal canceled, which makes sense given the situation.
Riot’s motion also states that its reputation has been damaged due to FTX’s fraudulent actions. The company’s top executives had a secret chat called “Wirefraud”, which is why Bankman-Fried was trying to avoid testifying before the House Financial Services Committee by hiding in The Bahamas. He is now being charged with wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
Read the whole article on Kotaku.
Leave a Reply