FTX users name Mercedes F1 team and MLB in new promo lawsuits

November 28, 2023 Coin Telegraph

baseball

The group of FTX users is taking aim at Mercedes F1 and Major League Baseball for allegedly helping FTX commit fraud by promoting the crypto exchange on its platforms.

Mercedes-Benz Formula One team and Major League Baseball helped FTX perpetrate fraud through promotional deals with the crypto exchange, according to a group of FTX users in a new lawsuit.

The plaintiffs, consisting of FTX users, filed twin class-action suits in a Florida District Court on Nov. 27, accusing the firms of “aiding and abetting and/or actively participating in the FTX Group’s massive, multibillion-dollar global fraud” and promoting unregistered securities.

In 2021, the Mercedes F1 team signed a promotional deal with FTX which saw the exchange’s logo emblazoned on cars, uniforms, hats and other materials. The MLB signed a similar deal that same year — the first pro sports league to do so — which saw umpires don FTX’s logo on their uniforms.

“The centerpiece, and most important feature, of the partnership, however, was the inclusion of FTX.US patches on all MLB umpire uniforms,” wrote the class complaint filing. “The FTX.US patches marked the first time in the history of MLB, which dates back to the 1800s, that a sponsor brand has had its logo appear on umpire uniforms.”

The rare double logo shot https://t.co/OLE7P8iY1N
— FTX (@FTX_Official) July 18, 2021

The complaint against Mercedes F1 was similar, saying the team showcased FTX’s logo in prominent locations on its cars, merchandise and marketing.

FTX also “regularly cheered on and congratulated” Mercedes F1 and its drivers, which the lawsuit said created a “veneer of trustworthiness with Mercedes F1 fans.”

“This ploy would not have been as effective were it not for Mercedes F1’s parallel promotions of FTX,” the complaint said.

Details @FTX_Official pic.twitter.com/3trhANWTCV
— Mercedes-AMG PETRONAS F1 Team (@MercedesAMGF1) September 24, 2021

The same group of FTX users is also still suing a list of celebrities who promoted the exchange, including former sports stars Shaquille O’Neal and Tom Brady, citing similar allegations of promoting unregistered securities.

Many celebrities named in the lawsuits have attempted to have the suit against them dismissed, saying they didn’t encourage depositing money onto FTX. At least three — professional American footballer Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash — have settled their lawsuits.

FTX founder and former CEO Sam Bankman-Fried was convicted of seven charges relating to fraud, conspiracy and money laundering earlier in November.

Just over a year after inking the deal, the MLB canned its five-year promotional contract with FTX shortly after the company filed for bankruptcy in November 2022.

Mercedes F1 similarly binned its deal with FTX the same year and removed its logo from its cars and merchandise.

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How OKX convinced F1 star Daniel Ricciardo it’s safe to promote crypto

September 14, 2023 Coin Telegraph

Coin Telegraph

Australian F1 driver Daniel Ricciardo said it took him a while to get comfortable with the idea of crypto, and that was before the collapse of FTX.

Australian F1 driver Daniel Ricciardo and his Olympic snowboarder mate Scotty James say they always think long and hard about the risks of promoting the wrong thing.

And as brand ambassadors for crypto exchange OKX, that no doubt was at the forefront of their minds when FTX collapsed and markets crashed — mere months after they signed on.

The risks then became all too apparent in the acres of negative publicity and lawsuits over comedian Larry David and NFL quarterback Tom Brady’s endorsement deals with FTX.

Even Hollywood nice guy Matt Damon faced blowback from everyone from South Park to Stephen Colbert as a result of his Superbowl commercial for Crypto.com, encouraging normies to buy crypto right before the market crash.

Daniel Ricciardo, Haider Rafique and Scotty James onstage at Token2049.

Crypto already had a pretty mixed reputation when Ricciardo signed up in May 2022, and he admits it took a while to get comfortable with the idea.

"I've been in the sport a long time where for sure, a lot of things get put in front of me, which is exciting.”

“But you kind of also learn when to say ‘no, that's not right for me,’" he told Cointelegraph at Token2049, nursing a fractured hand that has taken him out of Sunday’s Singapore Grand Prix.

Ricciardo is one of the most popular F1 drivers in the world and has a team that ensures he doesn't get into hot water. Minders struck out direct questions about FTX ahead of the chat, required approval for photos of the interview, and bustled him away after ten minutes for his next appearance.

Trust in crypto wavered after FTX blow-up

OKX’s strategy to become the “first crypto lifestyle brand” was driven by Chief Marketing Officer Haider Rafique. The cryptexchange signed multi-million dollar sponsorship deals with sports franchises like F1 team McLaren and United Kingdom Premier League team Manchester United.

The streets of Manchester have officially been futurised by OKX and @mancity fans

Explore Manchester and check ‘em out Arndale and 60 Shudehill

Better Future: Game On! #OKXManCity pic.twitter.com/Hae3Ug4n1f
— OKX (@okx) August 28, 2023

"We certainly get those calls," Rafique said, "from McLaren or Man City. ‘Hey, is everything all right over there? Like the industry looks a little shaky?’ And we have to understand and put ourselves in their shoes and respond accordingly." He says the exchange’s monthly proof of reserves reports are a big factor in gaining trust.

But even after getting his old team on board (Ricciardo now drives for AlphaTauri) Rafique still needed to gain the F1 driver's trust. “It wasn't a transactional relationship, it was a personal relationship,” he said.

Ricciardo explained it worked as Rafique did “a really good job to bring us in on personal level to educate us and inform us.”

“I was curious and wanted to learn — I had a lot of comfort going in with them. I've seen enough now to know that this is good for me and it's safe for me to kind of get involved in this."

Unfortunately, as Damon’s ill-fated Crypto.com deal shows, due diligence can only take you so far. The exchange wasn’t accused of anything and didn’t collapse but Damon’s reputation took a hit as markets crashed.

"The thing that was probably blowback for them was the message and it was poorly timed: ‘Fortune favours the brave’ and then the brave crashed," said Rafique.

As a mate of Ricciardo’s, four-time Olympian Scott James already had a personal connection when he signed on with OKX and was already interested in NFTs. But it still would have been a shock when FTX collapsed a month later.

*Fans line up to get pics with Daniel Ricciardo and Scotty James at Token2049*

"Until you understand something 100% at its full capacity, naturally you're going to have reservations," he said, but added that the platform's attempts to simplify and educate about crypto and trading put him at ease.

"I built trust over time with doing that and we feel pretty good about it,” he said. “But to say 12 months ago, I would say the same thing? No."

James said that snowboarding was a lifestyle choice that appeals to a "young demographic" and crypto is too due to its decentralization.

"I think my generation and younger than me are the ones that are really going to change that narrative for investing whether it's in cryptocurrency or other investments moving forward."

While the pair joked about releasing NFTs during their onstage appearance at Token2049, that’s not going to happen until markets recover, said Rafique.

"For their NFT's it's certainly not going to be about a speculative asset. It's going to be baked into how we can bring their fans closer to them through this asset that they can own. So I don't think it's going to happen anytime soon.”

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Binance scouts art for Pierre Gasly’s F1 helmet at Abu Dhabi GP

August 31, 2023 Coin Telegraph

Art

Binance announced a helmet design competition to shortlist the winning art, which will be used as the helmet artwork of Gasly, who won the 2020 Italian Grand Prix.

The winner of a new art competition hosted by Binance will see their design featured on the helmet of racing driver Pierre Gasly from the Alpine Formula One team during the Abu Dhabi Grand Prix on Nov. 26, 2023.

Crypto exchange Binance announced a helmet design competition to shortlist the winning art, which will be used as the helmet artwork for Gasly, who won the 2020 Italian Grand Prix.

Gasly described the collaboration with Binance as an opportunity “to engage with both the F1 and crypto communities in a creative and innovative way.” Participants need not be Binance users, opening up the floor to non-crypto F1 fans as well. The last date for submitting helmet designs is Sept. 8, with the winner declared by Sept. 15.

According to the crypto exchange, helmet designs that reflect Binance’s values and innovative ethos while engaging the motorsport community stand the greatest chance of winning the contest. Gasly stated:

“I can’t wait to show off the winning design that will showcase our shared innovative spirit that will accompany me in the race at the prestigious Abu Dhabi Grand Prix.”

The winner will also receive a replica helmet personally signed by Gasly. Binance has also partnered with other influential celebrities, such as soccer legend Cristiano Ronaldo and leading football clubs, to help improve fan engagement.

Amid massive regulatory hurdles that grip Binance, the crypto exchange continues collaborating with A-list celebrities to maintain relevance among crypto investors.

On Aug. 21, Binance revealed a partnership with legendary singer The Weekend to facilitate a Web3-powered concert tour — After Hours Til Dawn.

Fans in Australia will be offered two nonfungible tokens (NFTs) — Souvenir NFTs and Tour NFTs — that would allow for new avenues of engagement with The Weekend. As part of the deal, Binance committed to donating $2 million to The Weeknd’s XO Humanitarian Fund.

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Mysten Labs’ Sui network partners with F1 Red Bull racing team

June 1, 2023 Coin Telegraph

Business

The Red Bull team signed a $150 million sponsorship deal with crypto exchange Bybit in 2022 ahead of the market crash and major bankruptcies in the space.

The Sui network, backed by Mysten Labs, has announced a multiyear partnership with the Red Bull Formula One Racing team less than a month after the blockchain’s mainnet went live.

In a June 1 announcement, Sui said it would be the official blockchain partner of the racing team, scheduled to compete in Spain on June 4. Greg Siourounis, managing director of the Sui Foundation, said the partnership was aimed at “demonstrat[ing] how web3 enables human connections,” while the announcement suggested “immersive digital experiences” for fans in the coming months.

Huge news: We’re officially teaming up with @redbullracing!

As the team’s Official Blockchain Partner, this multi-year partnership means that fans will have even more exciting ways to connect with Oracle Red Bull Racing. ️ pic.twitter.com/7Gw8mbT3XH
— Sui (@SuiNetwork) June 1, 2023

Mysten Labs stepped up work on the Sui network following Meta shutting down its Diem project in 2022. The network, based on Rust-based programming language Move, went live on May 3, prompting major crypto exchange Binance to start offering trading pairs for the SUI token.

In 2022, the Red Bull Formula One Racing team signed a $150-million sponsorship deal with crypto exchange Bybit. However, the racing division of luxury car manufacturer Ferrari announced in January its Formula One team had cut ties with Velas Blockchain and chip manufacturing firm Snapdragon.

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Bitcoin white paper makes its F1 racing debut on Kraken-sponsored car

March 31, 2023 Coin Telegraph

Bitcoin

The Kraken logo on the car includes the entirety of the abstract and introduction of ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, and has its next race in Australia.

The Formula 1 car for the Williams Racing team will feature an excerpt from the Bitcoin white paper, as a result of a sponsorship deal with United States-based crypto exchange Kraken.

In a March 31 tweet, Kraken showed its logo shaped like the legendary sea monster contained text from the opening of the 2008 document released by creator Satoshi Nakamoto in 2008. The Kraken logo appeared to include the entirety of the abstract and introduction, as well as the sections on transactions and timestamp server of ‘Bitcoin: A Peer-to-Peer Electronic Cash System’.

YES! That’s the Bitcoin Whitepaper on the @williamsracing F1 car

Who said #Bitcoin isn’t fast!? pic.twitter.com/HSRMpPHihr
— Kraken Exchange (@krakenfx) March 31, 2023

The crypto exchange announced on March 28 it would be partnering with the Williams Racing F1 team as part of a sponsorship and Web3 deal. The arrangement marked one of the first times a crypto company had sponsored an F1 team since many similar deals fell apart amid the 2022 market crash.

Practice for the next Formula One event is currently underway at the Australian Grand Prix in Melbourne, with the main race scheduled for April 2. In 2022, roughly 420,000 people reportedly attended the 4-day event in person.

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Back on track: Kraken inks F1 crypto sponsorship deal with Williams Racing

March 29, 2023 Coin Telegraph

Advertising

Kraken has inked a partnership deal with Williams Racing marking the first major return to F1 for crypto this year.

Formula 1 teams could be warming to crypto advertising again despite a crypto sponsorship exodus in the wake of last year’s high-profile meltdowns.

On March 28, American crypto exchange Kraken announced that it was partnering with the Williams Racing F1 team in a new sponsorship and Web3 deal. The move marks the first major crypto company to ink a new deal in Formula 1 racing this year.

The deal will not only involve Kraken branding emblazoned on the Willams race cars, but branded team merchandise and nonfungible tokens (NFTs) for team fans to collect.

The rear wing of the car will also showcase KrakenNFT customer-owned digital collectibles artwork from leading third-party NFT projects at select races.

Williams Racing commercial director James Bower said, “We’re excited to get the partnership underway to offer our fans cutting-edge crypto and Web3 experiences, while also enabling Kraken to reach new institutional clients and businesses through our network and events.”

Today we’re thrilled to announce Kraken as an official partner of @WilliamsRacing!

Together we’re accelerating the crypto revolution on and off the grid

More info: https://t.co/ASxKLrBlFo pic.twitter.com/5RfIdkZKbZ
— Kraken Exchange (@krakenfx) March 28, 2023

Several Formula 1-racing teams quickly dropped their crypto sponsorship deals when things started to melt in late 2022. In mid-November, the Mercedes F1 team suspended a partnership agreement worth an estimated $27 million with the embattled FTX exchange.

Furthermore, Ferrari abruptly ended a long-term arrangement with the Swiss blockchain organization Velas in January. Alfa Romeo dropped its sponsor, Vauld, following troubles at the crypto lender last year.

In September, Singapore put the brakes on crypto advertising around the track but allowed it to remain on the cars. Other countries including France also placed restrictions on trackside crypto commercials last year forcing some teams to remove them.

However, some sponsorship deals have remained. The Aston Martin team has retained its crypto sponsors Crypto.com and Socios. Binance remains the partner of the Alpine team and OKX and Tezos are still with McLaren Racing, according to reports earlier this month.

Meanwhile, the Red Bull racing team has retained its crypto sponsor Bybit and OpenSea is still with Haas.

Kraken’s deal with Williams Racing could be the beginning of a return to racing and sports for crypto companies in 2023 as markets recover.

NFT rides shotgun as Red Bull Racing closes out F1 season

November 17, 2022 Coin Telegraph

abu dhabi

Red Bull Racing will close out a successful Formula 1 season with an NFT emblazoned on both drivers’ vehicles at the Abu Dhabi Grand Prix.

Cryptocurrency and blockchain technology firms continue to feature in the world of Formula 1, with a nonfungible token (NFT) making its mark on Red Bull Racing’s vehicles to close out the 2022 calendar.

Red Bull Racing dominated the F1 season, topping the constructors’ standings, while Max Verstappen closed out the drivers’ standings for a second consecutive season. With the curtain closing on 2022’s race schedule in Abu Dhabi on Nov. 20, the team’s cars will feature an NFT on their livery in what is being called a first in F1.

Red Bull Racing struck a deal with cryptocurrency exchange ByBit as a Principal Team Partner in February 2022, one of a handful of cryptocurrency firms sponsoring teams in Formula 1. The exchange’s logo will feature alongside Lei the Lightning Azuki, an NFT artwork and character from the anime-inspired Azuki collection.

The original Lei Azuki NFT is one of 10,000 NFTs from the collection. The #8494 is currently listed on OpenSea and is valued at around 9 Wrapped Ether (wETH), or $11,100 at the time of writing.

Red Bull Racing’s Lei the Lightning Azuki will be a limited edition version of #8494 and is set to be minted on the Tezos blockchain and available through ByBit’s NFT marketplace.

A statement from Red Bulls Racing’s team principal, Christian Horner, highlighted the ongoing exploration of Web3 use cases through the partnership in the sporting world

“In many ways, it’s been an eye opener for us to the vast opportunities Web3 has to offer. This unique project is the perfect combination of creativity, innovation, and passion which matches our ethos on the track.”

The sport of Formula 1 has been a big proponent of the cryptocurrency space. Crypto.com signed a major sponsorship deal in June 2021 as its official cryptocurrency and NFT partner. Fan token blockchain platform Chiliz has also partnered with a handful of F1 teams over the past two years.

McLaren became the first team to carry out a ‘livery takeover’ with their main sponsor OKX in 2022. Cointelegraph had an exclusive interview with Australian driver Daniel Ricciardo about the partnership at Token2049 in Singapore in October 2022.

Formula 1 also filed a number of trademark applications in October 2022 that suggest that the organization is looking to take full control of the intellectual property in the wider cryptocurrency space.

f1