Mercedes Formula 1 Team Suspends Sponsorship Deal With Cryptocurrency Exchange FTX After Company Files For Bankruptcy
Cryptocurrency has been the talk of the financial world, but lately it’s been for the wrong reasons.
FTX, according to CNN, the second largest player in the crypto space behind Binance, filed for bankruptcy last week. As a result, the Associated Press reports that racing outfit Mercedes Formula One has suspended its sponsorship deal with FTX.
Popular Black race car driver Lewis Hamilton races for the Mercedes F1 Team.
Mercedes had recently signed a multi-year sponsorship deal with the cryptocurrency company last September.
“As a first step, we have suspended our partnership agreement with FTX,” Mercedes said in a statement released last Friday.
“This means the company will no longer appear on our race car and other branded assets from this weekend. We will continue to monitor closely the situation as it evolves.”
The action following the announcement was immediate. Several Mercedes vehicles did not have the logo on the cars during last Friday’s free practice before the Brazilian Grand Prix at Interlagos.
According to Bitcoin.com, the Mercedes F1 team isn’t the only sports teams to terminate the agreement made with FTX.
The National Basketball Association’s Miami Heat also announced that its contract with the bankrupt company is now over. The deal was done in conjunction with Miami-Dade County. The Heat stated on Friday that due to the cancelation of the agreement, they are now searching for a new naming rights partner for the basketball arena located in South Beach.
The Heat also signed a 19-year deal last June for a reported $135 million.
Last summer, FTX was on a spending spree when it also signed on to become the official cryptocurrency exchange of Major League Baseball (MLB). The FTX.US logo was prominently displayed on the uniforms of MLB’s umpires during the All-Star Game earlier this summer in July and this year’s World Series.