The Golden State Warriors have made a controversial return to cryptocurrency partnerships, announcing oinbase">Coinbase as their “official cryptocurrency platform and blockchain partner.” This bold move comes while the team is still grappling with legal repercussions from their previous crypto sponsorship with the collapsed exchange FTX. The new partnership will focus on merchandise promotion and exclusive fan experiences, filling a void left by FTX’s dramatic downfall.
However, the Warriors’ new partnership isn’t without potential complications. oinbase">Coinbase is currently embroiled in a significant legal battle with the Securities and Exchange Commission (SEC), which filed a lawsuit in June 2023 alleging the exchange operated without proper registration and offered unregistered securities. This regulatory challenge adds another layer of complexity to the Warriors’ decision, particularly given their recent history with crypto partnerships.
The team’s previous experience with FTX has left lasting legal challenges, including multiple lawsuits that name both the franchise and star player Steph Curry. One notable case involves Canadian investor Elliott Lam, who is seeking $750,000 in damages, arguing that the Warriors and other endorsers should have recognized FTX’s deceptive practices. While other sports organizations like Major League Baseball and the Miami Heat distanced themselves from crypto partnerships following FTX’s collapse, the Warriors’ decision to partner with oinbase">Coinbase represents a significant recommitment to the cryptocurrency sector, despite the ongoing legal and regulatory uncertainties.
