Riot Games filed a motion to compel on Friday, and FTX has been served with it (December 16). The two corporations had previously entered into a seven-year sponsorship arrangement. For the League of Legends Championship Series, the bankruptcy court cut its ties with the cryptocurrency exchange FTX (LCS).
FTX filed into bankruptcy earlier this year, and according to records provided to the bankruptcy court by Riot Games, only half of the agreed-upon $12.5 Million USD was paid to Riot Games in the 2022 calendar year.
Riot has stated that it is impossible for FTX to repair the reputational damage already caused by the high-profile debacle that preceded FTX’s bankruptcy filing. There is no way FTX can reverse the damage Riot suffered after its collapse.”.
Sam Bankman(FTX owner) was arrested in the Bahamas earlier this week. Due to his passion for League of Legends, Riot Games revealed in court documents that its image is “inextricably linked” with FTX and Sam Bankman Fried.
Bankman-Fried is described as “reckless and juvenile” in the motion after reports surfaced that he played League games during the collapse of FTX. FTX owns the crypto-exchange sponsorship category, which Riot cannot commercialize. Another crypto-exchange will replace this sponsorship deal.
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