Three American sports personalities, Rob Gronkowski, Victor Oladipo, and Landon Cassill, recently agreed to collectively pay $2.42 million to settle allegations related to the Voyager promotion case involving the defunct crypto exchange, Voyager Digital. Gronkowski agreed to pay the highest amount at $1.9 million, while Oladipo settled for $500,000 and Cassill agreed to pay $25,000. The settlement provides insight into the financial and legal implications of their involvement in promoting the exchange.
The plaintiffs in the Voyager Promotion Case are also seeking $792,000 in attorney fees. Gronkowski, in particular, had a significant involvement with Voyager as a partner, VGX token holder, shareholder, and ambassador for the exchange. The settlement was negotiated through mediation to determine if Voyager’s products were unregistered securities and if the promoters improperly solicited investors. Voyager Digital filed for bankruptcy in July 2022 following market turmoil triggered by the collapse of Terra/Luna and default of loans to the Three Arrows Capital hedge fund.
In April 2024, Voyager took steps to compensate creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers insurance claims. This settlement, covering around 25% of Voyager creditors’ total claims, is expected to be distributed soon. Voyager also secured a claim of about $675 million from litigation with Three Arrows Capital, with $20.43 million designated as Voyager’s share from the initial distribution from 3AC.
Despite the sports personalities agreeing to settle the case, the main defendant, Mark Cuban, the minority owner of the Dallas Mavericks, has yet to come to a resolution. Cuban is facing a class action lawsuit scheduled to begin in November 2024 for his involvement in promoting Voyager’s Earn Program Accounts, classified as unregistered securities. The NBA and Cuban are also facing a lawsuit for alleged gross negligence in their marketing partnership with the defunct crypto exchange, with a trial set for November 2024. The NBA’s decision to support the partnership has drawn criticism, with suggestions for an NBA ban on crypto sponsorships.
In conclusion, the settlement involving the sports personalities in the Voyager Promotion Case sheds light on the consequences of promoting crypto exchanges and the legal battles that may ensue. The case highlights the importance of compliance with regulations in the crypto industry and the potential risks associated with endorsing products that could be classified as securities. As the legal proceedings continue, it remains to be seen how the involvement of prominent figures in sports and entertainment will impact the outcome of the case and influence future partnerships in the crypto space.
