FTX Fallout: Cal Removes Name From Stadium; Lawsuit Involving Celebrities

NBC Universal, Inc.

The fallout from the collapse of cryptocurrency company FTX continues, the latest impact seen at Cal's football stadium.

Cal, the first college to ever offer cryptocurrency naming rights, announced Wednesday it is suspending FTX's naming sponsorship. Logos on the field have already been removed from Memorial Stadium.

Commercials featuring top celebrities like Steph Curry and Tom Brady advertising the crypto platform are now part of a class-action lawsuit claiming FTX and its advertising misled customers.

"Crypto lawsuits against celebrities are becoming an epidemic," NBC Bay Area legal analyst Dean Johnson said. "The whole crypto area is a new frontier for litigation."

The lawsuit alleges customers sustained $11 billion in damages, calling the platform a "house of cards," alleging it targeted unsophisticated investors. FTX filed for bankruptcy last week.

Johnson believes this lawsuit won't be successful.

"This is a very odd lawsuit," he said. "It doesn’t allege any sort of securities fraud. It alleges deceptive advertising practices under Florida state law."

The lawsuit also named the Golden State Warriors, who partnered with FTX last year.

The suit blames the company and celebrities for false advertising.

"This lawsuit on its merit is just a gigantic stretch," Johnson said.

Johnson believes it will all end out of court.

"The whole campaign is called not an expert, so Steph is telling people, ‘Hey, I'm not an expert in this area, but I like the way it works. There doesn’t seem to be anything fraudulent or misleading," Johnson said.

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