…partly so they can find another crypto sponsor
Riot’s legal motion also argues that they’re suffering reputational damage, given FTX has turned out to be specifically fradulant rather than just regular crypto fradulant. Top execs there literallyhad a secret chat called “Wirefraud”, which is why Bankman-Fried was trying to avoid testifying before the House Financial Services Committee by hiding in The Bahamas. He’s nowbeing triedwith wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.
It seems trivial in comparison, but Riot also point to the public rebukes Bankman-Fried received for playing League Of Legends during meetings while FTX was mid-collapse, which included comments from Alexandria Ocasio-Cortez and Elon Musk. Not exactly natural allies, those two.
As Riot summarise: “There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX’s bankruptcy filing. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.”
It’s hard to have much sympathy for Riot when they accepted the deal in the first place - but even harder given that another reason they’d like this canned isso they can find another crypto sponser.
We’ve reached out to Riot for comment, and will update this post if we hear more from them.
Cheers,Kotaku.
