Miami-Dade Hints Legal Action on FTX Arena Deal

Miami-Dade Hints Legal Action on FTX Arena Deal
  • Miami-Dade county will investigate all FTX legal remedies.
  • Officials from Miami-Dade who negotiated the 19-year deal, hinted a legal action.

Miami-Dade, the county that signed the deal with the insolvency cryptocurrency exchange said in a statement that it was currently reviewing and seeking evidence about FTX’s financial status and possible next steps. In addition, last month only the FTX logo was added to the Miami arena.

The country stated that if the troubled crypto exchange FTX.com is unable to fulfill its responsibilities under a 19-year contract for naming rights to the Miami Heat arena, Miami-Dade County would investigate all legal remedies and hint legal action. Also, a Bahamas-based company is currently experiencing a financial crisis. 

FTX Relationship with Florida Country

Last year, FTX signed a deal with American Airlines Group Inc. to acquire the naming rights to the arena. The country would get a net of $90 million over 19 years, as per the terms, and the fund would be put toward projects like minimizing gun violence. Further, FTX pledged an additional $5 million to the region, as per a Bloomberg report. 

FTX has several sports contracts with the Miami arena. As part of a sponsorship deal, Major League Baseball umpires are required to wear patches with the company’s logo. FTX has a long-standing relationship with Formula 1 racing team Mercedes-AMG Petronas.

After many users withdrew their funds from FTX, its native token FTT faced a huge price drop. Following that Binance initially planned to buy the exchange on Tuesday but withdrew after reviewing the financial records.

Moreover, to protect assets and stabilize the company, Bahamian officials have frozen the assets of FTX Digital Markets a division of FTX and associated parties on Thursday.

A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.