League of Legends – LCS: Riot Games Accused of Involvement in Cryptocurrency Scam

Our friends at The Esports Advocate revealed this Monday that Riot Games and the LCS – the North American League of Legends League – have been facing legal action since March 7, accusing them of playing an active role in promoting cryptocurrency-related fraud. By associating with the now defunct exchange platform FTX.

A dark cloud hangs over Riot Games and the LCS, the North American league League of Legends. Legal proceedings launched March 7 in federal court in California have inundated two entities with disturbing allegations, The Esports Advocate (TEO) reports: They allegedly played an active role in promoting a cryptocurrency-related scam, in association with the now-defunct FTX exchange platform. . . In 2021, a controversial partnership was concluded between the publisher and the company FTX, which gave the latter the status of a major partner of the LCS. The lucrative contract, worth an estimated $40 million over seven years, includes sponsorship of the “Most Improved Player Award” and the “FTX Gold” segment during live shows.

The lawsuit claims that Riot Games ” Contributed to the fall From FTX Trading LTD, FTX US and Alameda Research (FTX Group) » Aiding and abetting and/or actively participating in FTX Group’s massive multi-billion dollar global fraud

“, in” Promoting, offering or selling unregistered securities such as FTX Yield Accounts and FTX Native Cryptocurrency Tokens” The publisher, like other FTX partners, would have received only a fraction of the total value of the contract. The exact amount paid by FTX before the bankruptcy remains a mystery, underline our colleagues at TEO. The Bahamas-based cryptocurrency platform officially filed for bankruptcy in November 2022 Curry, left questions and accusations behind.

Towards a trial?

Plaintiffs allege securities fraud, violations of unfair competition and deceptive practices laws, as well as civil conspiracy. Their complaint, a 158-page file, purports to form a class action and request a jury trial. The plaintiffs are seeking direct and compensatory damages, recovery of income generated by the fraudulent partnership, statutory, punitive and multiple damages and reimbursement of legal fees.