Just a few hours after the ailing cryptocurrency exchange FTX filed for bankruptcy, Miami-Dade County announced that it would end its business partnership with the company and remove its name from the renowned arena, which is home to the National Basketball Association team, the Miami Heat. The team is currently searching for new naming rights partners.
No more FTX Arena
Miami Heat complex, which hosts non-basketball events such as concerts and conferences in addition to basketball games, has been given the name FTX Arena ever since a naming rights deal worth $135 million was announced and signed last year. The arena is set in the center of downtown Miami on Biscayne Bay. The American affiliate of the exchange has made significant investments in Miami and has recently designated the city as the location of its national headquarters. Moreover, a month after transferring its headquarters in the United States to Miami, FTX US had reportedly called on its workers to shift to the city as well, as reported by TheCoinRise.
“Miami-Dade County and the Miami Heat are immediately taking action to terminate our business relationships with FTX, and we will be working together to find a new naming rights partner for the arena,” said Miami-Dade County Mayor Daniella Levine Cava and the Miami Heat in a joint statement.
“The reports about FTX and its affiliates are extremely disappointing.”
It is important to look at the fact that recently Binance, the largest cryptocurrency exchange in the world, decided against acquiring FTX as planned, but the deal terminated unexpectedly leaving the latter with no other option except filing for bankruptcy.
After stumbling into financial difficulties, the failed exchange finally filed for Chapter 11 bankruptcy protection on Friday after the whole FTX saga. In addition to his departure from the company, Sam Bankman-Fried, the company’s founder and former CEO, handed over the reins of leadership to John J. Ray III.