Riot Games Seeks to Terminate Partnership with FTX Amid Bankruptcy and Controversy

Riot Games, the developer of League of Legends, has initiated proceedings to dissolve its agreement with cryptocurrency firm FTX, citing the latter's bankruptcy filing and subsequent reputational damage. According to researcher Molly White, the decision stems from FTX's inability to rectify the harm caused to Riot's public image. Riot Games stated, "The reputational harm inflicted upon us by FTX's highly publicized downfall is irreparable, and it is impossible for the company to undo the damage that has already been done." The partnership, established in 2021, aimed to promote FTX through Riot's esports circuit, including the League of Legends Championship series, with a seven-year payment commitment. However, FTX has failed to meet its payment obligations, owing Riot $12.5 million in 2022, of which only $6.2 million has been paid, with an additional $12,875,000 due in 2023. The payments were set to increase until 2028. The court filing highlights the public criticism surrounding FTX's collapse and the arrest of its founder, Sam Bankman-Fried, as key factors in Riot Games' decision to terminate the partnership.