Esports org TSM is “consulting legal counsel” following FTX bankruptcy

Esports organisation Team SoloMid, higher referred to as TSM (or TSM FTX), is “consulting legal counsel” following the bankruptcy of a significant sponsor – cryptocurrency trade platform FTX.

As reported by the New York Times, FTX was paying TSM £17.6million ($21million) per yr for 10 years, as a part of the sponsorship deal that led to the organisation adopting the “TSM FTX” branding. Speaking on the time of the deal’s announcement, former FTX CEO Sam Bankman-Fried in contrast the deal to the likes seen in additional typical sports activities, saying: “Taking a huge industry and then reimagining it in a digital age: that’s sort of what esports are to sports, and it’s sort of what crypto is to investing and to finance.”

FTX’s fortunes have modified considerably dramatically since then, nonetheless. The firm declared bankruptcy final week, after it was hit by £5billion ($6billion) of withdrawal requests following rumours about firm’s poor monetary well being.

FTX’s collapse has invited additional scrutiny of the corporate, with the US Securities and Exchange Commission reportedly wanting into its actions. Bankman-Fried has resigned as CEO, telling Reuters that he is now within the Bahamas (the place FTX is based mostly), although a report claims that he and his fellow former FTX executives are on the lookout for methods to flee to Dubai as they face supervision from the native authorities within the Bahamas.

All of which is hardly nice information for the corporate’s sponsorship take care of TSM, who insists that the organisation stays “stable and profitable” regardless of the continued drama of their former sponsor (by way of PC Gamer).

“Along with the rest of the world, TSM has been closely following the situation surrounding FTX,” TSM introduced by way of Twitter. “We don’t have any perception into the matter apart from what has been reported publicly. We are at the moment consulting legal counsel to find out the following finest steps to guard our workforce, employees, followers, and gamers.

“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year, and beyond. We look forward to a great year in 2023.”

The collapse of FTX is unlikely to hurt TSM all that a lot – the organisation is big, with Forbes rating it because the world’s most respected esports firm at a worth of £454million ($540million). The org’s web site nonetheless lists the branding of “TSM FTX,” although this might nicely be attributable to contractual obligations greater than the rest.

In different gaming information, the Bible has launched on Steam.

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