Legal Settlement Reached in Voyager Promotion Case: Sports Personalities Agree to Pay $2.42 Million
Three American sports icons, Rob Gronkowski, Victor Oladipo, and Landon Cassill, have come to an agreement on May 3 to collectively settle allegations in the Voyager promotion case by paying a total of $2.42 million.
Financial Implications of the Settlement
The settlement involving the promotion of the now-defunct crypto exchange Voyager Digital sheds light on the financial repercussions and legal dimensions of their involvement.
- Retired NFL star Gronkowski is set to pay the highest sum, amounting to $1.9 million.
- OKC Thunder Guard Oladipo has agreed to a settlement of $500,000.
- NASCAR driver Cassill will contribute $25,000 to the settlement.
Attorney Fees Payment
In addition to the settlement amount, the plaintiffs are seeking$792,000 in attorney fees.
Gronkowski’s Involvement with Voyager
- Gronkowski had a more significant connection with Voyager compared to the other defendants.
- The NFL player served as a partner, VGX token holder, shareholder, and ambassador for the exchange.
Mediated Settlement Agreement
The settlement was reached through mediation to investigate whether Voyager’s products were considered unregistered securities and if the promoters had engaged in improper solicitation of investors.
Bankruptcy and Compensation Efforts by Voyager Digital
Voyager Digital filed for bankruptcy in July 2022 due to market turmoil stemming from the Terra/Luna collapse and defaults on loans to the Three Arrows Capital hedge fund. However, the exchange has taken steps to compensate creditors by settling with Three Arrows Capital, FTX, and Directors and Officers (D&O) insurance claims.
Mark Cuban’s Pending Trial
While the sports personalities have resolved the case, the primary defendant, Mark Cuban, remains to settle.
- A class action was filed against Mark Cuban, the minority owner of the Dallas Mavericks, in 2022.
- The trial against Cuban for his promotion of Voyager’s Earn Program Accounts (EPAs) as unregistered securities is scheduled for November 2024.
NBA and Voyager Partnership Criticisms
NBA’s endorsement of the partnership between Voyager Digital and the Dallas Mavericks has sparked backlash due to Cuban’s and the team’s alleged “gross negligence” in their marketing collaboration with the defunct crypto exchange.
Hot Take: Resolving Legal Disputes in the Crypto Industry
As legal settlements and trials unfold in the crypto industry, transparency and accountability are crucial for maintaining trust and integrity in the sector.
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