The Spanish Football Club Atlético Madrid Plans to Sue Crypto Exchange WhaleFin
The Spanish football club Atlético Madrid is preparing to file a lawsuit against the Singaporean crypto exchange WhaleFin, as reported by Protos. The dispute revolves around a $44 million sponsorship agreement that WhaleFin failed to pay to the football club. Atlético Madrid had signed a five-year contract with WhaleFin for the 2022/23 season, but the crypto exchange violated the terms of the agreement and refused to make the remaining payment.
Previous Troubles of WhaleFin
In December 2022, WhaleFin terminated a $25 million sponsorship agreement with English FC Chelsea due to financial difficulties. This occurred seven months after the contract was signed.
Atlético Madrid’s Crypto Ventures
Atlético Madrid has its own fan token and has been involved in the crypto space. However, there has been minimal reaction from the club regarding the lawsuit. At present, the token is trading at $2.61 and has seen an 8% increase in value over the past month, according to CoinMarketCap.
Similar Incidents with Italian Football Clubs
Italian football clubs Inter and Roma also faced a similar situation with blockchain company DigitalBits. The clubs had entered into sponsorship agreements but were dropped when DigitalBits failed to pay Inter approximately $17 million and Roma around $11 million.
Hot Take: Atlético Madrid Takes Legal Action Against WhaleFin
The Spanish football club Atlético Madrid is taking a stand against crypto exchange WhaleFin by pursuing legal action due to unpaid sponsorship funds. This case highlights potential risks associated with sponsorship agreements in the crypto industry and emphasizes the importance of honoring contractual obligations. As more sports teams explore partnerships with cryptocurrency companies, it is crucial for both parties to ensure transparency and compliance to maintain trust and avoid legal disputes.
By
By
By
By
By