Former SEC Official Criticizes NBA’s Approval of Voyager-Dallas Mavericks Partnership
A former official from the Securities and Exchange Commission (SEC), John Reed Stark, has expressed his disapproval of the NBA’s decision to allow a partnership between cryptocurrency exchange Voyager Digital and the Dallas Mavericks. Stark argues that the NBA should be held accountable for any misconduct related to crypto engagements by its teams. He believes that if a team were to partner with organizations involved in illegal or unethical activities, the NBA would intervene, and the same standards should apply to crypto partnerships.
Voyager and Dallas Mavericks Partnership Faces Class-Action Lawsuit
The partnership between Voyager and the Dallas Mavericks has resulted in a class-action lawsuit filed by investors. The lawsuit claims that Voyager made false claims regarding investor protection. Dallas Mavericks owner Mark Cuban is scheduled to be deposed next month. The extent of the NBA’s responsibility for the alleged fraud remains unclear, but Stark believes that the NBA should be held responsible for similar misconduct by its teams.
NBA’s Role in Crypto Endorsements
In 2022, Voyager filed for Chapter 11 bankruptcy after a decline in the crypto market. Both the Commodity Futures Trading Commission and the Federal Trade Commission filed lawsuits against former Voyager CEO Stephen Ehrlich, accusing him of fraudulent statements. Voyager reached a settlement with the FTC, agreeing to provide $1.65 billion in relief. However, Ehrlich did not agree to a settlement, and the FTC’s case against him will proceed in federal court. The NBA also faces a proposed class-action lawsuit related to its marketing partnerships with Voyager.
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