G2 Esports has filed a lawsuit against NFT provider Bondly over a deal that was allegedly misleading.
As reported by the Washington Post, G2 Esports’ lawsuit claims that Bondly misled leadership at the company about its capabilities and failed to meet deadlines. These included payments to G2, which resulted in £3,962,621 ($3,962,621 USD) in damages.
The contracts attached to the filing included details on the deal between G2 and Bondly, indicating that they both entered a two-year exclusive partnership on June 2, 2021.
Bondly was reportedly tasked with developing NFTs for G2 Esports and acting as the organisation’s sales agent. The contract specified that the NFT provider had access to G2’s intellectual property, such as images, video, and audio, with the plan to promote them as an “Official Partner of G2 Esports.”
TO THE MOON
We welcome Bondly as our NFT partner.
First NFT – 30.06: https://t.co/c45Dfz8jEI pic.twitter.com/HgfRSZirvL
— G2 Esports (@G2esports) June 3, 2021
According to the Washington Post, the provider was “on the hook for a series of fees” including an annual rights fee of £1,509,030 ($2million USD), and an advance guarantee of £1,656,692.50 ($1.25 million USD), “paid out in instalments that Bondly could recoup in the course of NFT sales.”
G2 alleges that after the first rights fee invoice was sent to Bondly, a representative for the NFT provider responded to the esports organisation saying that it was, “past the point of being able to successfully deliver an NFT program.”
Bondly apparently attempted to terminate the contract following the disagreement. “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,” the official filing 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.”
In other news, the next The Witcher game will be headed by Gwent‘s game director Jason Slama.
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