G2 Esports sues NFT provider Bondly over $5.2 million in damages

G2 Esports logo, tags: g2 esports nft $5.2 - G2 Esports

Germany-based professional esports organization G2 Esports has filed a lawsuit on March 16 against their partner NFT provider, Bondly, for a failed NFT deal that cost more than $5.2 million, misled presentation in products, and overdue deliverables.

According to The Washington Post’s Mikhail Klimentov, G2 filed the lawsuit to the Los Angeles County Superior Court claiming Bondly had caused damages worth over $5.2 million following the two’s partnership back in June 2021.

G2 announced Bondly is yet to provide their related services to G2 in accordance with the two-year-long agreement. Moreover, the agreement entails the blockchain technology company is given access to G2’s intellectual property in exchange for a series of NFTs, annual rights fee, and monetary compensation for G2.

Lawsuit, chronology

Klimentov spearheaded the news of G2 filling the lawsuit, adding it as “a botched deal” for developing and selling NFTs related to G2.

“NEW: G2 Esports is suing the blockchain tech company Bondly, alleging that it botched a deal for the development and sale of G2 branded NFTs. It filed the suit on March 16 in the Los Angeles County Superior Court,” Klimentov tweeted.

In addition, G2 in the lawsuit claims Bondly’s representative had reached out to inform the company has passed the point of being able to successfully deliver the NFT program shortly after the first of the rights fee invoice has been sent.

Going on from that, communications between G2 and Bondly continues as both have failed to decide who was in charge or responsible for what is outlined in the contract. G2 then also claims Bondly wanted to put the agreement on pause which was then rejected by G2.

According to G2’s filling, weeks after rejecting Bondly’s request, the tech company made an attempt to terminate the agreement, adding that G2 is being uncooperative to work on a mutually benefiting solution.

Moreover, G2 in the lawsuit accused their supposed partner of making the company’s branding recklessly and both Bondly, as well as their agents, knew the company’s representation was false. Furthermore, G2 claims that Bondly is aware of the company’s inability to perform in delivering clients’ results, but waited until G2 to announce their partnership publicly “to reap the benefits”.

As quoted from The Washington Post:

“Bondly and its agents knew that their representations were false when they made them, or made the representations recklessly and without regard to their truth,” G2’s filling reads. “They knew they could not perform, but cunningly waited until G2 had publicly announced its partnership with Bondly to its millions of fans to reap the benefits of publicity through the highly valuable G2 brand.”

The lawsuit is still developing at the time of writing this article and either Bondly or G2 has yet to provide each of their response in light of the lawsuit.

Previously, it is worth mentioning that Bondly has worked in creating NFTs for well-known individuals, namely Scottish singer-songwriter Lewis Capaldi and social media personality Logan Paul. Other than Capaldi and Paul, Bondly also had worked with BLAST Premier in June last year to launch a chicken-themed NFT collection.