After FTX flounders, what becomes of Miami arena naming deal?

MIAMI – Cryptocurrency big FTX filed for chapter Friday, leaving a variety of unanswered questions, together with an enormous one right here in South Florida: what’s going to occur to its naming rights deal for Miami’s FTX Area and the cash it was set to pay Miami-Dade County over the following 20 years?

The corporate went beneath amid the crypto equal of an old school run on the financial institution.

After submitting for Chapter 11 chapter Friday, its shoppers remained unable to withdraw funds on-line.

Firm CEO Sam Bankman-Fried resigned and apologized on Twitter.

“I used to be shocked to see issues unravel the best way they did earlier within the week,” Bankman-Fried wrote.

We’ve seen Bankman-Fried in South Florida earlier than. He made a courtside go to to a Miami Warmth recreation after his firm purchased naming rights to what had beforehand been referred to as the American Airways Area, paying $135 million over 19 years.

“FTX was an alternate that had a shiny sheen on it,” cryptocurrency journalist Laura Shin mentioned. “It was led by a CEO who was usually on Capitol Hill and being photographed by regulators and lawmakers.”

Investor Mike Novograts, who stands to lose thousands and thousands, spoke to CNBC.

“It is a story as outdated as time, to some extent,” Novograts mentioned. “Some younger, charismatic man in Bermuda shorts with floppy hair charmed the 20 greatest traders on this planet.”

The query in South Florida is whether or not the charismatic entrepreneur additionally hoodwinked Miami-Dade County and whether or not the corporate will have the ability to preserve its finish of the deal transferring ahead.

Miami-Dade Mayor Daniella Levine Cava mentioned Thursday that she is “carefully monitoring” the scenario.

FTX’s troubles have despatched shockwaves by means of the crypto market, with the worth of Bitcoin down almost 20% over the previous few days.