FTX lettering to disappear from Miami basketball arena

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FTX Logo on Miami Arena: "Continuing Difficulties"

Photo: Marco Bello / REUTERS

During its prosperous times, crypto exchange FTX built some connections in the sports world.

The company's lettering on the arena of the US basketball team Miami Heat also testifies to this.

Now, the Miami-Dade County has asked a US court for immediate permission to terminate the naming rights deal with FTX and remove the brand from the arena.

In the filing, the district that owns the arena and negotiated the naming rights deal with FTX writes that continuing to designate the building as the FTX Arena would only add to the "ongoing difficulties" brought about by the collapse of the cryptocurrency exchange has brought.

According to the application, FTX would not suffer any damage as a result of the end of the cooperation.

"On the other hand, Miami-Dade County continues to provide valuable naming rights and other benefits to the debtor, adversely affecting the county's ability to find a new arena naming partner."

A hearing is scheduled for mid-December.

For now, the FTX signage will remain on the building and the name has not been changed.

The arena hosts matches of the Miami Heat basketball team in the NBA professional league.

FTX filed for bankruptcy on November 11th.

The County of Miami and the basketball team immediately took steps to end ties with FTX.

The building in Miami has been called FTX Arena since June 2021.

A 19-year, $135 million sponsorship deal between FTX and the district was just beginning.

FTX's next payment to the district of $5.5 million would be due on January 1st.

The Miami Heat basketball team was to receive $2 million annually under the agreement.

The collapse of FTX has many ties to the sports world.

A number of athletes - including football star Tom Brady, tennis player Naomi Osaka and Miami Heat forward Udonis Haslem - have been named as defendants in a class action lawsuit against FTX.

The plaintiffs accuse them of supporting FTX as an advertising character and are demanding damages.

FTX had also signed a deal with Mercedes for Formula 1.

Mercedes has already removed the FTX logo from its race cars.

Crypto exchange FTX filed for bankruptcy protection in the United States about two weeks ago after customers withdrew en masse in response to the secret move of $10 billion in deposits.

The Bahamas-based company and its founder, Sam Bankman-Fried, are under investigation by state and federal agencies.

The FTX bankruptcy also draws circles.

Troubled cryptocurrency broker and lender Genesis has reportedly hired a recovery advisor.

Genesis has commissioned the investment bank Moelis & Company to examine options such as possible bankruptcy, the New York Times reported, citing insiders.

The company has not yet made a final decision regarding bankruptcy.

However, it is also possible that bankruptcy could still be averted.

No comment was initially available from Genesis.

The company had previously rejected media reports of impending bankruptcy.

However, the company had previously suspended lending and repayments for the time being.

According to a newspaper report, the crypto bank BlockFi is also on the verge of collapse.

mmq/AP/Reuters