Riot Games Faces Lawsuit Over Failed Crypto Partnership

In a surprising turn of events, Riot Games finds itself in legal hot water. The company is facing a lawsuit filed in a federal court in California, where it was accused of being part of fraud through its deal with FTX, a cryptocurrency exchange that has since gone under.

Back in August 2021, Riot Games shook hands with FTX, marking a significant partnership. This deal was notable, especially after Riot Games had previously stopped TSM, a major esports team, from showing FTX’s logo on their jerseys during League of Legends Championship Series (LCS) matches. With this partnership, FTX’s branding was seen during league matches, including the Most Improved Player Award and the on-screen gold tally.

However, the relationship soured as FTX faced financial collapse, leading Riot to try and end their $96 million agreement amidst FTX’s bankruptcy proceedings. Now, the tables have turned, with Riot Games at the receiving end of legal action.

A group of plaintiffs has come forward, filing a lawsuit on March 7, 2024. They claim that Riot Games played a part in FTX’s downfall by endorsing the platform, thus contributing to what they allege was a wide-reaching fraud.

A Serious Legal Battle

The lawsuit brings serious charges against Riot Games and the LCS, suggesting they broke fraud laws. It aims to become a class-action suit, allowing others who feel wronged to join in. Already, fourteen individuals have taken the step to be part of this legal battle.

Furthermore, the legal documents highlight a growing concern over how the internet and social media can be used to support fraudulent schemes and reach people worldwide. This case joins a series of lawsuits against FTX, which has seen not only companies but also famous personalities dragged into the legal mess for promoting the crypto exchange.

Riot Games, like TSM and other entities that had inked deals with FTX, benefited financially, though only to a limited extent before FTX’s crash. The crypto exchange, under the leadership of its charismatic yet controversial CEO, Sam Bankman-Fried, had been known for its aggressive marketing strategies, including hiring celebrities for promotions.

As the lawsuit against Riot Games unfolds, it serves as a cautionary tale about the risks and responsibilities of corporate partnerships, especially in the volatile world of cryptocurrency. This legal challenge is just one part of the broader fallout from FTX’s collapse, a saga that continues to grip the financial and esports worlds alike.