Investors and government officials are attempting to sort out the catastrophic failure of FTX, one of the world’s largest cryptocurrency exchanges, as the Miami Heat announces that it will no longer do business with FTX and will rename its home venue, the FTX Arena.
The cryptocurrency firm FTX announced Friday that it would file for bankruptcy, with CEO Sam Bankman-Fried stepping down in the wake of a trading scandal that has embroiled the company in regulatory investigations. The announcement shook the cryptocurrency world, leaving investors wondering how they might get their money back.
FTX Took Advantage of the World of Sports
Consumers’ trust in the crypto industry has become increasingly reliant on such efforts in the sports world.
In addition to appearing on the shirts of MLB umpires and on the wing of Lewis Hamilton’s Formula One Mercedes, FTX is recognized as the official cryptocurrency platform and NFT marketplace of the Golden State Warriors. FTX was also less than two years into its 19-year, $135 million arena naming rights deal with the Heat when the Warriors signed on as the club’s cryptocurrency platform and NFT market.
Last year, the Los Angeles arena shared by the Clippers and Lakers was renamed Crypto.com Arena. In 2018, the Sacramento Kings began mining cryptocurrency in their arena, and more and more organizations, including the Washington Capitals, have offered limited non-fungible token collections.
FTX has partnered with athletes, including Tom Brady, who appeared in FTX ads. In March, FTX signed tennis star Naomi Osaka in an effort to draw more women to their crypto platform.
A Lesson Learned
FTX has completely ripped through popular US sports. Leaving BILLIONS of dollars hanging in limbo! To this date, the entire company and its entities have now gone chapter 11 bankrupt in just a week. The gross negligence of Sam Bankman-Fried is quite remarkable. I’m just glad I didn’t put any of my money into FTX in any kind of way. Hopefully you go out in time if you did.