FTX Sponsorship Deals Revealed in Sam Bankman-Fried’s Trial
The ongoing criminal trial of former FTX CEO Sam Bankman-Fried has shed light on the various sponsorship deals the collapsed cryptocurrency exchange had entered into. While the multimillion-dollar agreements with celebrities like Tom Brady and Gisele Bündchen have been widely reported, new evidence presented in court provides greater detail.
League of Legends Deal and Attempts to Terminate
According to documents entered into evidence, FTX struck a high-profile deal with Riot Games, the creator of “League of Legends,” worth nearly $100 million over seven years. However, following FTX’s bankruptcy and loss of customer funds, Riot Games has been seeking to terminate the agreement since late last year.
Sponsorship of Music Festivals
FTX also made significant sponsorship commitments to music festivals. The Tomorrowland festival, known for its top DJs like Solomun, received approximately $42 million from FTX until 2026. Additionally, FTX secured a $25 million deal with the annual Coachella music festival held in southern California.
Neither Riot Games, Tomorrowland, nor Coachella have provided comments regarding these revelations.
Evidence Presented by Prosecutors
The prosecutors submitted a spreadsheet detailing FTX’s numerous sponsorship deals during the cryptocurrency bull run as evidence. They aim to establish a pattern of reckless spending and financial decisions by Bankman-Fried. Nishad Singh, a former FTX insider, testified that he was concerned about Bankman-Fried’s excessive approach to spending.
Sam Bankman-Fried is currently facing criminal charges related to the collapse of FTX.
Hot Take: FTX’s Lavish Sponsorship Deals Under Scrutiny in Bankman-Fried’s Trial
The ongoing trial of former FTX CEO Sam Bankman-Fried has revealed the extent of the cryptocurrency exchange’s sponsorship agreements. From a multimillion-dollar deal with Riot Games to significant commitments to music festivals, FTX spared no expense in its pursuit of brand promotion. However, as the trial unfolds, these lavish deals are being scrutinized for their financial impact on the company and its customers. With accusations of reckless spending and cataclysmic financial decisions, the trial highlights the potential risks associated with such extravagant sponsorships in the volatile crypto industry. As the prosecution presents its evidence, it remains to be seen how these revelations will impact FTX’s reputation and future partnerships.
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